Which is not considered to be a GDP investment?   The building of an apartment complex   Additions to inventories at steel plants   Purchase of shares of company stock   Construction of a new factory

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Which is not considered to be a GDP investment?

 

  • The building of an apartment complex

  •  

    Additions to inventories at steel plants

  •  

    Purchase of shares of company stock

  •  

    Construction of a new factory

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GDP is the measure of the sum of all the final services and goods produced within a country over a specific period. It also includes the income earned and total income spent on these goods produced.  There are five components of GDP based on which it is calculated that are,

Y= C+I+G+(X-M)where,C= ConsumptionI= InvestmentG= Government Expenditure(X-M)= Net Exports

GDP investment is the measure of physical investment used in calculating the GDP. This is one of the components of GDP as it provides an indicator of the future productive capacity of the economy and increases employment in the economy. It also includes the spending by households on new houses but investment in GDP does not include purchases of financial products. It includes private investment and capital expenditures within the country.

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