For the purpose of calculating GDP, investment is spending on

Question

a. real estate and financial assets such as stocks and bonds.
b. capital equipment, inventories, and structures, excluding household purchases of new housing.
c. capital equipment, inventories, and structures, including household purchases of new housing.
d. stocks, bonds, and other financial assets.

Answer 1

For the purpose of calculating GDP, investment is spending on:

c. capital equipment, inventories, and structures, including household purchases of new housing.

In GDP calculations, investment specifically refers to business investments in physical assets (capital equipment, structures) and changes in inventory, as well as residential investment, which includes household purchases of new housing.