Question

Which of the following are included or excluded in this year’s GDP?

a. Interest received on an AT&T corporate bond: .
b. Social Security payments received by a retired factory worker: .
c. The unpaid services of a family member in painting the family home
d. Income of a dentist from the dental services provided: .
e. A monthly allowance a college student receives from home: .
f. Money received by Josh when he resells his nearly brand-new Honda automobile to Kim: .
g. The publication and sale of a new college textbook: .
h. An increase in leisure resulting from a 2-hour decrease in the length of the workweek, with no reduction in pay: .
i. A $2 billion increase in business inventories: .
j. The purchase of 100 shares of Google common stock: .

Answer 1

The answers are:

A) INCLUDED, new income.

B) EXCLUDED, no new income.

C) EXCLUDED, didn't sell any service.

D) INCLUDED, new and final service.

E) EXCLUDED, didn't buy any new and final good or service.

F) EXCLUDED, not new.

G) INCLUDED, new and final good.

H) EXCLUDED, didn't buy any new and final good or service.

I) INCLUDED, increase in investment.

J) EXCLUDED, not new.