Which of the following is NOT included in the consumption component of GDP?
A) monthly rent for a two-bedroom apartment
B) spending on health care
C) payment for college tuition
D) the purchase of a new house

Question

Quizplus · Accepted Answer

The purchase of a new house is not included in the consumption component of GDP. It is considered an investment expenditure, as it contributes to the country's productive capacity in the long run. The consumption component of GDP includes spending on goods and services consumed by households, such as rent, health care, and college tuition.

Which of the Following Is NOT Included in the Consumption