Final answer:
The GDP is defined as the total value of all final goods and services produced within a country in a year, with a focus on avoiding double counting. Used goods, the informal economy, and intermediate goods are excluded from its calculation.
Step-by-step explanation:
The Gross Domestic Product (GDP) of the United States is defined as the total value of all final goods and services produced in a given period of time, which is typically described as a year. Activities included in the calculation of GDP are those that involve the production of these final goods and services, which are goods at the furthest stage of production. It's imperative for statisticians to avoid double counting, where the output is counted multiple times as it progresses through different stages of production.
To provide a clear answer, activities like government spending on goods and services, investments in machinery and buildings, and the overall consumption of goods and services are included in the GDP. However, the value of intermediate goods used to make these final products is not counted separately to avoid double-counting. Additionally, used goods, black market transactions, and informal economy activities are excluded.
Thus, the correct definition, among the provided options, is option 1: the total value of all goods and services produced.