Included in the investment category of GDP under the expenditure approach is the purchase of parcels of land for the purposes of realizing capital gains when real estate values rise.

Question

Quizplus · Accepted Answer

The purchase of parcels of land for capital gains is considered a financial investment and is not included in the investment category of GDP. Only investments in fixed assets, such as machinery and buildings, are included in this category.

Included in the Investment Category of GDP Under the Expenditure