Consider the following issues of national income accounting.
(a) In the national income and product accounts, is a new automobile bought by a consumer treated as a consumption good or as an investment good? Describe and explain the treatment used.
(b) If the automobile were instead treated in the other way, how would national product be affected? Explain what would be the effect on net national product and gross national product.
(c) A recent change in the national income and product accounts is that the purchase of microcomputer software by a business is now treated as investment, rather than as the purchase of an intermediate good. How will this change affect net national product and gross national product? Contrast the effect in the short run and in the long run?