In GDP measurement,Investment spending includes
A)spending by individual households on automobiles and durable goods
B)spending by businesses on labor resources
C)changes in business inventories
D)spending by government on salaries
E)spending by households on stocks and bonds

Question

Quizplus · Accepted Answer

Investment spending includes changes in business inventories, which refers to the purchase or production of goods that a business plans to sell later. It also includes spending by businesses on equipment, structures, and intellectual property products. Spending by individual households on automobiles and durable goods falls under personal consumption expenditure, while spending by governments on salaries falls under government spending. Spending by households on stocks and bonds is considered financial investment and is not included in GDP measurement.

In GDP Measurement,Investment Spending Includes