The gross domestic product (GDP) of the United States is defined as the _ all _ _ in a given period of time.

Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2017.
  • A) Zippycar, a U.S. automobile company, produces a convertible at a manufacturing plant in Minneapolis on January 9, 2017. It sells the car at a dealership in Chicago on February 2, 2017.
  • B) Treetopplers, a U.S. lumber company, produces wood at a plant in Oregon on September 19, 2017. It sells the wood to Buildit and Partners, a developer for use in the production of a new house that will be built in the United States in 2017. (Note: Focus exclusively on whether production of the wood increases GDP directly, and ignore the effect of production of the new house on GDP.)
  • C) Fastlane, a Japanese automobile company, produces a sedan at a plant in Indiana on December 12, 2017. A family buys the sedan on December 24.
  • D) An accountant starts a client's 2017 tax return on April 14, 2018, finishing it just before midnight on April 15, 2018.
  • E) Roadway Motors, a U.S. automobile company, produces a convertible at a plant in Germany on March 17, 2017. Roadway Motors imports the convertible into the United States on May 21, 2017.
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Three fill in the blanks are: market value of, goods and services, produced. Included in GDP: It includes all the items which are produced within economy and sold in marketplace. Excluded from GDP: Produce in house, transfer of payments, black money, selling illegal goods and share income. A and C are included in GDP, while B, D and E are excluded. More on measuring GDP in lecture slides.
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