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24 January, 04:54

What does the investment component of GDP measure?

a. spending on domestically produced goods by foreign buyers

b. spending on goods to be used in future production

c. spending by government agencies on goods and services

d. spending by households on goods and services

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Answers (1)
  1. M
    24 January, 06:59
    0
    b. spending on goods to be used in future production

    Explanation:

    There are basically four components of Gross domestic product (GDP) which are as follows

    GDP = Consumption spending + investment + government spending + net exports

    where,

    Net exports would equal to

    = Export-import

    Here, investment means the investment is done on goods which increase in productivity for the future period so that overall output could be increased
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