The purchase of 50 shares of AT&T stock is a component of investment under the GDP accounts.Group of answer choicesTrueFalse

The statement is True.

Explanation:

1. Investment Component: In GDP accounting, investment includes purchases of goods that will be used for future production. This encompasses not only physical assets (like machinery) but also financial assets (like stocks).

2. Purchasing Shares: When an individual purchases shares of a company, it is considered an investment in the financial market, contributing to the total investment reported in GDP.

3. GDP Accounts: The Gross Domestic Product (GDP) accounts include various components of economic activity, including consumption, investment, government spending, and net exports.

Thus, purchasing 50 shares of AT&T stock qualifies as a component of investment under GDP accounts.