The expenditure method of calculating GDP includes four components: consumption, investment, government spending, and net exports.

A. Firm A adds inventory - This is considered an investment because it is a part of the firm's capital stock.

B. Firm B builds a new factory - This is also considered an investment because it is a capital expenditure.

C. Firm C purchases a computer - This is considered an investment because it is a capital good that can be used in the production of other goods or services.

D. Firm D purchases government bonds - This is not considered an investment in the context of GDP. While it is an investment from the firm's perspective as it expects to receive a return on it, it is not a capital expenditure and does not contribute to the production of goods and services. Therefore, the correct answer is D. Firm D purchases government bonds.

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The expenditure method of calculating GDP includes four components: consumption, investment, government spending, and net exports.

A. Firm A adds inventory - This is considered an investment because it is a part of the firm's capital stock.

B. Firm B builds a new factory - This is also considered an investment because it is a capital expenditure.

C. Firm C purchases a computer - This is considered an investment because it is a capital good that can be used in the production of other goods or services.

D. Firm D purchases government bonds - This is not considered an investment in the context of GDP. While it is an investment from the firm's perspective as it expects to receive a return on it, it is not a capital expenditure and does not contribute to the production of goods and services. Therefore, the correct answer is D. Firm D purchases government bonds.

Knowee AI · Accepted Answer

The expenditure method of calculating GDP includes four components: consumption, investment, government spending, and net exports.

A. Firm A adds inventory - This is considered an investment because it is a part of the firm's capital stock.

B. Firm B builds a new factory - This is also considered an investment because it is a capital expenditure.

C. Firm C purchases a computer - This is considered an investment because it is a capital good that can be used in the production of other goods or services.

D. Firm D purchases government bonds - This is not considered an investment in the context of GDP. While it is an investment from the firm's perspective as it expects to receive a return on it, it is not a capital expenditure and does not contribute to the production of goods and services. Therefore, the correct answer is D. Firm D purchases government bonds.

Which of the following is not investment when calculating GDP using the expenditure method is: A. Firm A adds inventory B. Firm B builds a new factory C. Firm C purchases a computer D. Firm D purchases government bonds

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