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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 higher education.

D. capital equipment, inventories, and structures by businesses, plus household purchases of new housing.

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Divya Singh
Divya SinghLv10
16 Jan 2021

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Related questions

The investment component (I) of GDP measures spending on

A. financial assets such as stocks and bonds. During recessions, it declines by a relatively small amount.

B. financial assets such as stocks and bonds. During recessions, it declines by a relatively large amount.

C. residential construction, business equipment, business structures, and changes in inventory. During recessions, it declines by a relatively large amount.

D. residential construction, business equipment, business structures, and changes in inventory. During recessions, it declines by a relatively small amount.

Economists define investment as the purchase of

a. Any physical asset, whether new or not, used by businesses to increase production.

b. Any physical asset used by businesses to increase production and the repurchase of common stock.

c. A new physical asset such as a new machine or a new house.

d. Business spending on stocks and household spending on durable goods.

A requirement to have an annually balanced federal budget would mean:

A.That actual GDP would equal potential GDP every year.

B. That there would be no more recessionary gaps or inflationary gaps.

C. That the role of taxes and transfers as automatic stabilizers would be undermined.

D. That total household disposable income would be the same every year.

Unsaved Economists view investment spending as which of the following:

A. Purchase of bonds.

B. Spending on physical capital.

C. Mutual fund investing.

D. Purchase of stocks.

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