Capital goods are typically purchased to ________.They get included in GDP ________.
A)replace raw materials;in the year they are produced
B)enable the investor to produce other goods and services;in each year they are utilized
C)enable the investor to consume less in the current period;as they are used up in the stages of production
D)enable the investor to produce other goods and services;in the year they are produced
E)none of the above

Question

Quizplus · Accepted Answer

Capital goods are long-term, durable items that are purchased by firms with the intention of using them to produce other goods and services. They are not meant for immediate consumption. As such, they are included in GDP in the year in which they are produced, because they contribute to the production of other goods and services in that same year.

Capital Goods Are Typically Purchased to ________