In the calculation of GDP, which is NOT included as part of investment?
A) purchases of new homes and apartment buildings
B) changes in stockpiles of final goods and raw materials
C) purchases of lawn mowers by households
D) spending by businesses on physical capital

Question

Quizplus · Accepted Answer

Purchases of lawn mowers by households are considered consumer spending, not investment, in the calculation of GDP. Investment typically includes spending on capital goods, residential construction, and changes in inventories.

In the Calculation of GDP, Which Is NOT Included as Part