Which of the Following Items Is NOT Included in Gross

question 143

Multiple Choice

Which of the following items is NOT included in gross private domestic investment?

• A) residential housing
• B) new equipment purchased by businesses
• C) purchases of common stock
• D) increases in business inventories

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Definitions:

Real GDP

The total market value of all final goods and services produced in an economy in a year, adjusted for inflation, reflecting the actual economic output.

Changes

Alterations or modifications in conditions, situations, or in the state of affairs.

Prices

The amount of money required to purchase a good or service, reflecting its value in a monetary term.

Inflation Rate

The rate at which the overall cost of goods and services rises over a given time frame.