a) What are the major categories of “investment” expenditure in the GDP accounts?
b) What are “transfer” expenditures of governments? Why aren’t they included as part of “government spending” in calculating GDP?
c) Why aren’t “intermediate” goods purchases by businesses added to GDP spending totals?
d) Agree or disagree: GDP = wages + rents + net interest + dividends + net taxes.
e) Agree or disagree: Annual mortgage payments by households are counted as part of consumer spending when adding up C+I +G + (X-IM) to determine RGDP.