Answer :
Answer:
a. the purchase of a new home
Explanation:
Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households on durable and non durable goods + Investment spending by businesses + Government Spending + Net Export
The purchase or a new home is considered an investment and thus it is added to investment when calculating GDP .
I hope my answer helps you
The item is the one type of household expenditure that is categorized as investment is a. the purchase of a new home
The following information should be considered:
- GDP is the sum for all the final goods & services that are produced.
- In the given situation, the purchase of the new home should be considered as an investment and the same should be added at the time of determining the GDP.
Therefore we can conclude that the correct option is a.
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