--Which of the following are examples of the investment component of GDP? If the
ID: 1190290 • Letter: #
Question
--Which of the following are examples of the investment component of GDP? If the statement is an example of investment as it pertains to GDP, then drag and drop it into the " Examples of Investment" bin. If it is not, then drag and drop it into the "Examples of Other GDP Components" bin. Each item should be placed into a bin.
-Floatin Away Kayak Co. buys equipment to use in the factory
-The government purchases new military equipment
-all the econ consulting charges a foreign client $50,000 for services it already provided
-tanya buys a computer for personal use
-underfoot sneaker co. shoes are produced in the current time period but not sold in inventory
Explanation / Answer
(1) Equipment for Factory: Investment (Since it is being used as a capital purpose for the business)
(2) Government purchase of military equipment: Other component of GDP (Government Spending)
(3) Charging a foreign client: Other component of GDP (Net export of service)
(4) Computer for personal use: Other component of GDP (Consumption demand)
(5) Unsold product increased inventory: Investment (Addition to inventory)
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