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Suppose you were hired to calculate the Gross Domestic Product (GDP) by using the expenditure approach. You would count buying a new house as _____.

net exports
consumption
investment

2 Answers

4 votes

investment is the correct answer thanks


User Hackose
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Suppose you were hired to calculate the Gross Domestic Product (GDP) by using the expenditure approach. You would count buying a new house as investment.
Investment is one of the items to consider to determine GDP by expenditure approach which includes residential construction, since residential buildings can be rented out, even if they are occupied by owners.

User Majeda
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