Changes to inventories
Usually when people normally use the word investment, they mean:
a financial investment that earns interest or has the potential to increase in value
Goods that are produced in a particular period but not sold in that period:
end up in inventories and are included in investment
Money spent on the purchase of a new house is
included in the calculation of GDP as part of investment
A Ford vehicle is produced in November of 2018 and sold to Sawgrass Ford in December of 2018. The vehicle is later purchased by the Garcia family in January of 2019. The vehicle would be counted as:
investment in 2018 and disinvestment in 2019
What are subcomponents of the Investment component of GDP?
new residential construction changes in business inventories business expenditures
From an economist's perspective, what are not examples of investments?
purchase of shares of company stock government construction of new highways and bridges
Economists call financial investments __________
savings
An example of investment spending is:
the purchase of a freezer by an ice cream parlor
What are examples of an investment according to economists?
the purchase of a newly built pizza oven (built in Texas) by Bob, who also owns a Papa John's franchise the construction of a distribution center by Amazon
When we use the word investment in economics, it means:
the value of all goods produced during a period for use in the production of other goods and services