Question

Out of the following list, choose the item that would be included in the “investment component” of GDP:

a. Mr. Smith purchased 200 shares of CitiBank stocks.
b. A U.S. family bought a 10-year old house and rented it out.
c. The New York City installed new street lights in some residential areas.
d. The Flight Centre travel agency in Chicago just bought a new desktop computer.

Answer 1

The answer is D the Flight Centre travel agency in Chicago just bought a new desktop computer.

Answer 2

The correct option that would be included in the "investment component" of GDP is (d) The Flight Centre travel agency in Chicago just bought a new desktop computer. Investment component includes business investments on capital goods such as machinery, equipment, and buildings used to produce other goods and services.