What components of GDP (if any) would each of the following transactions affect?

(b) Aunt Jane buys a new house.
(c) Ford sells a Mustang from its inventory.
(g) Honda expands its factory in Marysville, Ohio.

My Answers:
(b) Investment since I read that new housing is included in Investment component of GDP.
(c) Nothing since would it being sold from their inventory would be negative in GDP.
(g) Investment since a firm is expanding their factory.

2 answers

  1. trt

  2. correct

Answer this Question

Still need help?

You can ask a new question or browse more Economics questions.