The Investment Component of GDP Can Be Broken Down into Three

question 112

Essay

The investment component of GDP can be broken down into three main categories.Identify these categories and briefly explain what is included in each category.

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Definitions:

Warranty Liability

Warranty liability is an obligation that a company assumes when it promises to repair or replace defective products during a specified period, representing a potential future expense.

Federal Unemployment Tax

A payroll tax paid by employers based on the wages paid to employees, used to fund state workforce agencies.

FICA Tax

Federal Insurance Contributions Act tax, a U.S. federal payroll tax imposed on both employees and employers to fund Social Security and Medicare.

Federal Income Tax

A tax levied by the federal government on the annual income of individuals, corporations, trusts, and other legal entities.