A number of economists contend that official measures of U.S. gross private investment expenditures are understated. For
Question:
A number of economists contend that official measures of U.S. gross private investment expenditures are understated. For instance, household spending on education, such as college tuition expenditures, is counted as consumption. Some economists suggest that these expenditures, which amount to 6 percent of GDP, should be counted as investment instead. Based on this 6 percent estimate and the GDP computations detailed in Figure 8-3 on page 185, how many billions of dollars would shift from consumption to investment if this suggestion was adopted?
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