Reply To: Definition of GDP


Then the GO would include machinery bought by a capital goods producer?

But the GDP would not include machinery bought by the capital goods producer?

From Investopedia

“GDP = C + G + I + NX


C is equal to all private consumption, or consumer spending, in a nation’s economy, G is the sum of government spending, I is the sum of all the country’s investment, including businesses capital expenditures and NX is the nation’s total net exports, calculated as total exports minus total imports (NX = Exports – Imports).”

Can you explain what capital expenditures are? And whether they are GDP or GO?