Which of the following are examples of the gross private domestic investment component of Gross Domestic Product (GDP)? I. The purchase of production equipment
II) An increase in finished goods inventory
A) I only
B) II only
C) Both I and II
D) Neither I nor II

Question

Quizplus · Accepted Answer

Both the purchase of production equipment and an increase in finished goods inventory are considered part of the gross private domestic investment component of GDP. This includes investments in business infrastructure and increases in inventories.

Which of the Following Are Examples of the Gross Private