Which of the following is included as investment in GDP?
I.cars produced during the year but unsold at the end of the year
Ii.new capital equipment produced and purchased during the year
Iii.purchases of a company's stocks and bonds
A)i only
B)ii only
C)iii only
D)i and ii
E)i,ii,and iii

Question

Quizplus · Accepted Answer

I. Cars produced during the year but unsold at the end of the year are not included in investment in GDP as they do not represent any new spending on production.

II. New capital equipment produced and purchased during the year is included in investment in GDP as it represents spending on new production.

III. Purchases of a company's stocks and bonds are not included in investment in GDP as they are purely financial transactions and do not represent any new spending on production.

Which of the Following Is Included as Investment in GDP