Zander read a report about the nation’s GDP from last year. The report talks about the investment expenditures. What is included in the GDP calculation of investment? Select one: a. Total real estate value. b. Stock market value of businesses c. additions to inventories. d. total value of capital stock.
When you are calculating the GDP, investment includes:
addition of new capital assets, e.g. new equipment, new machinery, or new facilities acquired by businesses (exchange of existing assets are not included in the GDP, only new ones)
additions to inventories
new houses or any type of building purchased by private households
