Question

Which of the following transactions are counted in GDP? Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click the option twice to empty the box. Patricia receives a Social Security check. unanswered Molly buys a used car. unanswered Kerry buys a new sweater to wear this winter. unanswered Nayana sells $1,000 of General Electric stock. unanswered Jasmine buys a new car. unanswered Roberto gives his daughter $50 for her birthday.

Answer 1

Answer:

Kerry buys a new sweater to wear this winter.

Jasmine buys a new car.

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Net export = exports – imports  

Items not included in the calculation off GDP includes:  

1. services not rendered to oneself

2. Activities not reported to the government  

3. illegal activities

4. sale or purchase of used products

5. sale or purchase of intermediate products

The purchase of the sweater and the purchase of the new car constitutes consumption spending and it would be added as part of GDP.

The cash gift and Social Security check are transfer payment s and would not be included as part of GDP