Question

Activities included (and not included) in the calculation of GDP

Answer 1

Answer:

market value; goods

The gross domestic product (GDP) of the United States is defined as the _market value_ of all _final goods and services_ in a given period of time.

Explanation:

Calculo, a U.S. electronics company, produces a calculator at a plant in Indonesia on March 27, 2015. Calculo imports the calculator into the United States on May 18, 2015.----- The GDP won't be affected by this mainly because it is imported.

Rotato, a U.S. tire company, produces a set of tires at a plant in Michigan on September 25, 2015. It sells the set of tires to Speedmaster for use in the production of a two-door coupe that will be made in the United States in 2015. (Note: Focus exclusively on whether the production of the set of tires increases GDP directly, and ignore the effect of the production of the two-door coupe on GDP.)----- This would have an effect on the GDP because it is a finished domestic product.

An accountant starts a client's 2015 tax return on April 14, 2016, finishing it just before midnight on April 15, 2016.--- This is excluded, the 2015 gdp won't be affected by this.

Fastlane, a Japanese automobile company, produces a sedan at a plant in Indiana on December 9, 2015. A family buys the sedan on December 24. ---It is included as it affects the GDP.

Awake Cafe, a U.S. coffee company, produces a latte at its location in Minneapolis on January 14, 2015. It sells the latte to a customer immediately.----- It affects the 2015 gdp because it's a domestic product.