Question

Sue buys a new computer, which counts as a ____ in the gross domestic product. Later, she buys a new home, which counts as a ____ in the Gross domestic Product.
Investment, investment
Consumption, investment
Consumption, consumption

Answer 1

The correct answer is B) consumption/investment.

Sue buys a new computer, which counts as consumption in the gross domestic product. Later, she buys a new home, which counts as an investment in the Gross Domestic Product.

The acquisition of a computer is considered a consumption because you use it on a daily basis, has a utility and the product is wasting over time losing is value. In the case of the house, it is considered an investment because is a property, a real state property that increases its value with time if it is well conserved.

Answer 2

The right answer for the question that is being asked and shown above is that: "Consumption, investment." Sue buys a new computer, which counts as a consumption in the gross domestic product. Later, she buys a new home, which counts as a investment in the Gross domestic product.