Asked • 06/12/19

If a company buys a robot, it's part of investment. If a person buys a car, it's part of consumption. Why?

As I understand it, a company buying a robot -- something that depreciates over time and will eventually break -- is included in investment because it provides a long term benefit (increase in GDP). But then why is a car considered consumption? It also depreciates over time (though not in a year) and provides long term benefits to GDP.

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