Question : Which of the following is included in the calculation of GDP?
Option 1: Investment spending on new factories
Option 2: Payments for government transfer programs
Option 3: Consumer spending on used cars
Option 4: Income earned by foreign nationals in the country
Correct Answer: Investment spending on new factories
Solution : The correct answer is (a) Investment spending on new factories
Gross Domestic Product (GDP) measures the total value of goods and services produced within a country's borders during a specific time period. In the calculation of GDP, investment spending on new factories, equipment, and structures is considered as part of the "investment" component of GDP. This includes expenditures made by businesses to expand their productive capacity and contribute to economic growth.
Related Questions
Trending Articles/News
