For the Purpose of Calculating GDP, Investment Is Spending on

question 133

Multiple Choice

For the purpose of calculating GDP, investment is spending on

• A)stocks, bonds, and other financial assets.
• B)real estate and financial assets such as stocks and bonds.
• C)capital equipment, inventories, and structures, including household purchases of new housing.
• D)capital equipment, inventories, and structures, excluding household purchases of new housing.

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Definitions:

Net Seller

An entity or individual who sells more than they purchase in a given market.

Price Increase

A rise in the cost of goods or services, affecting consumer purchasing power and company profits.

Diagram

A simplified drawing showing the appearance, structure, or workings of something, typically used for explanation purposes.

Utility Function

A representation in economics of how a consumer ranks different bundles of goods or services in terms of their satisfaction or preference.