The investment component of GDP has accounted for about ___% of total GDP, includinga.18%; stocks, bonds, and other business financial assets, and changes in business inventories.b.13%; fixed investment such as financial assets, commercial real estate, new residential housing, and changes in business inventory.c.18%; fixed investment such as capital equipment, all construction, new commercial real estate, and changes in business inventories.d. 12%; capital equipment, business inventories, commercial real estate and structures, excluding new residential housing.35.

In economics investment meaning is different from accounting sense, It means addition to capital…

Answered: The investment component of GDP has…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Classify each of the following items as a final good or an intermediate good, and identify whether it is a component of consumption expenditure, investment, or government expenditure on goods and services: Item 1. Packing boxes bought by Amazon.com. Item 2. Starbuck's grande mocha frappuccino bought by a student. Item 3. A new limousine for the president. Item 4. New airplanes bought by United Airlines. Item 1 is and item 2 is O A. an intermediate good; a final good that is consumption expenditure B. a final good that is consumption expenditure; a final good that is consumption expenditure C. a final good that is consumption expenditure; a final good that is investment D. an intermediate good; a final good that is investment Item 3 is and item 4 is O A. an intermediate good; an intermediate good O B. a final good that is government expenditure; a final good that is investment O C. an intermediate good; a final good that is investment D. a final good that is government expenditure; an…
4. Suppose that you are given the following data for the country of Trumpland: consumption net factor income from abroad 12,800 10,000 3,100 2,200 2,700 2,900 200 interest payments capital consumption allowance government spending on goods and services 2,400 2,900 3,200 wages investment exports imports profits rental payments 700 From the data provided, find a. GDP using the expenditure approach. b. GNP and NNP. c. NI using the income approach. d. statistical discrepancy. e. GDP using the income approach. (HINT: TrumRland is similar to the US economy for 2016, in billions of dollars.)
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a.	18%; stocks, bonds, and other business financial assets, and changes in business inventories.
b.	13%; fixed investment such as financial assets, commercial real estate, new residential housing, and changes in business inventory.
c.	18%; fixed investment such as capital equipment, all construction, new commercial real estate, and changes in business inventories.
d.	12%; capital equipment, business inventories, commercial real estate and structures, excluding new residential housing.