Question

The construction of a new state highway would be included in the _____ category of GDP:

A) Consumption
B) Investment
C) Government spending
D) Net exports

Answer 1

The construction of a new state highway would be included in the Government spending category of GDP.

Step-by-step explanation:

The construction of a new state highway would be included in the Government spending category of GDP. Government spending is a component of GDP that includes the purchases of goods and services by the government. Examples of government spending include building highways, and schools, and purchasing military equipment. Since the construction of a new state highway falls under government spending, it would be included in the calculation of GDP. The construction of infrastructure, such as highways, is a government investment in public assets, and it falls under the government spending component of the Gross Domestic Product (GDP).