Answer:
c. consumption expenditures on durable goods.
Explanation:
To calculate the GDP in expenditure approach, the spending will be categorized into 5 groups; consumer spending, investment spending on capital goods, government spending, exports, and import.
[tex]GDP = C + I + G + (X - M)[/tex]
Since it does not indicates that new automobile will be used for production, it can be assumed that it is consumption spending of an individual, and it is durable since it is useful for more than 1 years. Thus, the correct answer is C, consumption expenditures on durable goods.
