Answer to Question #210090 in Macroeconomics for kylexxuu1

Question

Should we include residential construction, such as apartment buildings and houses in Gross Investment when we calculate GDP?

Answer 1

We should include residential constructions such as apartment buildings and houses in gross investment when we calculate GDP. If a newly constructed home is sold, the sales prices are not included in GDP. Instead, the construction value put in place is the one counted in GDP when construction is completed. Gross investment includes construction