Question

Which of the following transactions adds to U.S. GDP for 2006?

a. In 2010, Marvin Windows manufactures 20 windows that will eventually be installed in an office building in Minneapolis. The windows remain in Marvin’s inventory at the end of 2010.
b. An Irish marketing consultant works in Boston during the summer of 2010 and earns $50,000 during that time.
c. When Tim and Tina were both single, they lived in separate apartments and each paid $750 in rent. Tim and Tina got married in 2010 and they bought a previously unoccupied house that, according to reliable estimates, could be rented for $1,550 per month.
d. All of the above transactions add to U.S. GDP for 2010.

Answer 1

Step-by-step explanation:

Remember that the GDP measures the market value of all goods and services produced in an economy (country or region) in a specific period of time

a. This does not add to the U.S GDP for 2006 because windows were produced in 2010.

b. This does not add to the U.S GDP for 2006 because the Irish marketing consultant earns in 2010.

c. This does not add to the U.S GDP for 2006 because Tim and Tina got married in 2010.

d. Transactions that add in 2010 GDP do not count in 2006 GDP.