what is included in “final goods and services” in the definition of GDP

Question

As we know , the definition of gdp “GDP measures the monetary value of final goods and services”

Ive also heard that GDP = C + I + G + (X-M)

So im trying to reconcile these two definitions.
I know that the goods and services people buy are included in C and that’s what the only thing i thought about when i thought of “final goods and services” ,
So what is included in I and G.

Suppose a company invests in building an oil well, so is that also considered a “final good” ?

And what about G ? what final good or service does the govt create/provide

In: 5

Answer 1

The “I” and “G” aren’t about what “final goods and services” they provide, but about what they spend to get those goods and services. The same is true for “C”. This whole equation is about spending.