Tim buys a newly constructed house after receiving a first home-owner grant from the government. Which GDP components does his purchase belong to? a. Partly Investment (I) and partly government purchases (G) b. Consumption (C) c. Investment (I) d. It is not recorded in any of the GDP components because it is a transfer from the government. e. Government purchases (G)
Added by Margaret P.
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However, Tim's purchase of the newly constructed house does count towards GDP. This purchase is considered an investment because it is a purchase of a new residential property. Show more…
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