Question

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.
2017 GDP
Scenario Included Excluded
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.
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.)
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.
An accountant starts a client's 2017 tax return on April 14, 2018, finishing it just before midnight on April 15, 2018.
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.

Answer 1

The gross domestic product (GDP) of the United States is defined as the sum of the all final goods and services produced in a given period of time.

included

excluded

included

excluded

excluded

Step-by-step 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

Items not included in the calculation off GDP includes:

1. services 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 sale of the car would be included in GDP as part of investment spending

The wood is an intermediate good and would not be included in GDP

The purchase of the sedan is added to GDP as part of consumption

The work the accountant did would be added to 2018s GDP

The car produced in Germany would be included in Germany's GDP