Using the expenditure approach, investment includes:
A) household residential expenditures.
B) firm structures, equipment, and inventories.
C) fixed firm and household structures, equipment, and inventories.
D) government and firm equipment expenditures.
E) government defense and firm equipment expenditures.

Question

Quizplus · Accepted Answer

Investment in the expenditure approach to GDP includes both fixed investments in structures and equipment by firms and households, as well as changes in inventories. This encompasses residential expenditures by households, structures, and equipment by firms, but does not typically include government expenditures on defense or equipment, as these are categorized separately under government spending.

Using the Expenditure Approach, Investment Includes