Investment and consumption | GDP: Measuring national income | Macroeconomics | Khan Academy

[@Implotion]

I have always been interested in economics, but being an computer science guy I haven't got the time to go to classes - except now I do! Thanks a lot, Salman! :)

[@jamshid3766]

It was 9 years ago, you must be an economist now

[@pongman]

Professor Khan, Can you categorize your videos and place numbers or chapters on them? For instance this would be Economics: Chapter 2, number 1. I think it might help as you post videos. I still can't believe you haven't won the Times "Person of the Year" or the Nobel Peace Prize. My daughter, Taylor is still wondering whether you can do the MCAT's. She's taking MCAT classes at MIT. She's very impressed with the campus and loves going there. Thank you very for all you've done for my kids.

[@nik4546]

Great comment

[@hannahkrugh2355]

If you buy a bond it should not be included in GDP and rent paid is part of consumption. I had this in lecture for macroeconomics.

[@compulsi0n]

Great review for my midterm, thanks!

[@jamshid3766]

May you fail your exam successfully!!! Omen🤲🤲

[@المستشار-ك4م]

7:31

Thank you Sir,that was helpful.

[@hwakeb]

Hi, I have a question, let's say, For example: let’s say a country with a total GDP 1.96 Trillions. A company (X) contributes 11.1 Billions into the economy GPD. Which 0.6%. How the percentage 0.6% came from. What is the method or equation being used to come up with this percentage?

[@jayhighwind8491]

11.1 Billion / 1.96 Trillion = 0.00566. Multiply answer by 100 to convert to percentage = 0.6%

[@jamshid3766]

In simple words, if you had 100$ and your friend gave you 10 more bucks as a gift, how would you calculate that 10$ in percentage

[@cassandraswanson2886]

this is so clear and easy to understand

[@olufssenn]

What if you consume protein shakes to work out and go to your job as a bodyguard? Would the protein shakes be considered consumption or investment?

[@unikkatilboss]

For "everyday" it would probably be a investment. For the economic view of life it would be a consumption.

[@aaditya2061]

Thanks a Lot Sir!! This Cleared my Doubt

[@fawesomekila]

Stocks and bonds are not investments themselves but simply indications of ownership.

[@TheMAcademy]

How come Investment in raw material accounts in GDP when it is not final good

[@simsgym100]

Some of you are taking some of the thoughts way too deep. What is presented here are basic macroeconomic concepts. Not business concepts. The reality of some of the concepts may be different, but they are what is taught in a basic or AP macro class. But....olufsenn....good question. And tomorrow would it be exports?

[@freedomworks3976]

Savings & investment today = A day in the future you don’t have to work.

[@jamshid3766]

Well done guys

[@InvestBrazil]

Invest in the emerging markets!

[@thomasmcgraw8778]

so this might be weird or poorly phrased but when is the line drawn as to when the investment becomes a consumption. let's take the example of buying a house. if I buy a house from its original owner after living in it for 10 years. in 10 years he may have added a new room, cashed a bus through a wall, renovated the bathrooms, or maybe his kid drew on the walls in sharpie. the point I'm trying to get at is that it seems that when a good is exchanged from one owner to another the value is rarely if ever the same as when the first owner bought it so how does that affect things?

[@nikolatosti]

Consumer... right here

[@penningtoncaptial8826]

Wonderful tutorial!

[@kellywong1675]

I have a question, does inventory accumulation included in GDP?

[@inderjeetsingh-ob3qu]

GDP consists "∆ in stock" it means we add newly produced goods only which is not sold during the year.

[@albertinejunedin3196]

Hi, just one question: so renting a house would also fall in consumption, is that right? Or what about buying a house from someone else or second-hand cars/things? are they included or are they not part of the formal economy? Thanks.

[@ballsack4581]

Probably too late of a response, but in terms of GDP no, since the house was not produced that year, therefore it is not a "final good."

[@danielmaluenda9731]

Albertine June Din id argue rent is consumption, since you cant gain economically speaking when youre renting property, and buying/owning a house is an investment because you can make profit in different ways such as selling that house for a higher price. Remember that when calculating GDP or national income or anything like that, you cant count anything twice. So really its either consumption or investment.

[@priyanaik2113]

Hello Sir, As you mentioned that car in the economic consumption so my question to you is what if an individual buys a second hand car for a temporary basis. How to bifurcate in that case?

[@TobyUnravels]

Second hand cars are not part of "Investment" nor consumption. It is not counted.

[@Alex-wx8be]

Vegucation is not an investment. It’s a sunk cost

[@imasciencegeek]

I'm confused what is the third category? Recycling? I would think an economist would have an emphasis on efficient use of resources than just how much businesses create new.

[@liaxnne8363]

Is electrical consumption of a company is included in consumption?

[@nutrisoyboy]

@olufssenn consumption. For technical purposes I would say consumption.

[@soniaclements6532]

Can you also invest in labour? Or is it only capital, inventory and structures?

[@guitarzilla]

You dont include the idea that investment is only when it exceeds the value beyond inflation.

[@guitarzilla]

Also you dont include the idea that houses arent owned they require upkeep and an ever increasing tax revenue per annum. That 25 percent of homeowners in the US owe more than the property is worth. Also, that as the cost of energy increases, suburbia and land ownership becomes less of a "asset".

[@atilahasim5048]

How to calculate gross private investment?

[@sravanitatikonda8574]

What about gold ornaments?

[@clarencehouston9943]

Why is a new home counted as investment? And how much of it is..the entire house price?

[@keertigachandran3939]

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