<p>Investing is about "new" things that did not exist. Any acquisition of a previously existing asset, such as a house, is considered as Savings rather than Investment. Moreover, Investment is not consumed at the present time and are expected to provide flows for longer periods of time.</p>

CC BY-SA 4.0
2020-03-26T00:11:44.047Z
But I thought GDP is only supposed to count final goods produced.  Isn't capital considered an intermediate good?
Shuheng Zheng
CC BY-SA 4.0
2018-10-20T17:46:01.847Z
2018-10-20T17:46:01.847Z
user19891
<p>GDP = C + I + G + (X-M)</p>

<p>If GDP is supposed to count only final goods and services, why include I? Eg if build public roads, can count as G; if build factory, can count when factory produces goods and those goods are sold.</p>

<p>Put differently, counting I seems to double count. Eg if one counts spending on factory as I today, when the factory produces and sells goods tomorrow and in subsequent periods, the counting is done again (eg I, followed by C).</p>

<gdp>
why is I included as part of GDP?
jerometanyc
# why is I included as part of GDP?

(Asked by: username_0 on 2018-10-20)

GDP = C + I + G + (X-M)

If GDP is supposed to count only final goods and services, why include I? Eg if build public roads, can count as G; if build factory, can count when factory produces goods and those goods are sold.

Put differently, counting I seems to double count. Eg if one counts spending on factory as I today, when the factory produces and sells goods tomorrow and in subsequent periods, the counting is done again (eg I, followed by C).

**Tags:** gdp


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## 1 answers

### Answer by username_1 on 2018-10-20. Score: 1

Investing is about "new" things that did not exist. Any acquisition of a previously existing asset, such as a house, is considered as Savings rather than Investment. Moreover, Investment is not consumed at the present time and are expected to provide flows for longer periods of time.

> **Comments:**
> **username_2**: But I thought GDP is only supposed to count final goods produced.  Isn't capital considered an intermediate good?  

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