Sue buys a new computer, which counts as _____ in the Gross Domestic Product. Later, she buys a new home, which counts as _____ in the Gross Domestic Product.
Sue buys a new computer, which counts as consumption in Gross Domestic Product. Later, she buys a new home, which counts as investment in the Gross Domestic Product. Gross domestic product is the total value of all goods and services provided within a single year. Consumption means purchasing something that you are going to use to keep for yourself. Once the item is fully consumed there is no life left in it. However, with purchasing the house it is an investment because there is much more time that can be put into owning a home and it can be resold for even more at times, than the purchase price - resulting in an investment.
