The investment component of GDP includes all of the following except:
A) purchases of corporate stock.
B) spending on new plants and equipment.
C) purchases of new housing by households.
D) changes in business inventories.

Question

Quizplus · Accepted Answer

Purchases of corporate stock are not considered investment in GDP calculations because they do not directly contribute to the production of goods and services or increase the productive capacity of the economy. The other options listed (B, C, and D) all involve spending on physical capital that can be used to produce goods and services, and are therefore included in the investment component of GDP.

The Investment Component of GDP Includes All of the Following