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Question : Which of the following is included in the calculation of GDP?

Option 1: Transfer payments

Option 2: Capital gains

Option 3: Social security benefits

Option 4: Investment spending


Team Careers360 12th Jan, 2024
Answer (1)
Team Careers360 19th Jan, 2024

Correct Answer: Investment spending


Solution : The correct answer is d) Investment spending.

Gross Domestic Product (GDP) is a measure of the total value of all goods and services produced within a country's borders during a specific time period. It is a comprehensive measure of economic activity within an economy.

Investment spending, which includes business investment in machinery, equipment, structures, and inventory, is indeed included in the calculation of GDP. Investment spending represents spending on the creation of new capital goods and contributes to the overall economic output.

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