Which of the following items is the one type of household expenditure that is categorized as investment rather than consumption when calculating GDP?

a. the purchase of a new home
b. the purchase of a new tv
c. the purchase of a new yacht
d. the purchase of durable goods such as stoves and washing machines

a. the purchase of a new home 

Explanation:

Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households on durable and non durable goods + Investment spending by businesses + Government Spending + Net Export

The purchase or a new home is considered an investment and thus it is added to investment when calculating GDP .

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