Question

Gross domestic capital formation includes:

• A. Gross domestic fixed capital formation
• B. Change in stock
• C. Valuables
• D. All of the above

Answer 1

The correct option is D All of the above

Gross domestic capital formation refers to the net increase in the physical asset by the household, public, and government sector within the measurement period of the economy. Therefore, it includes the fixed capital formed in that period i.e. fixed assets, change in stock i.e. changes in inventories, and valuables that is valuation of sold out stocks retained.