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You buy a hula hoop at Wal-Mart. Does it Count towards GDP?

If yes, Which component of GDP is it?
If no, why is it not counted?

User Stokedout
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1 Answer

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Answer:

If you buy a hula hoop at Wal-Mart, it would count towards GDP. It would be counted as a part of the consumption component of GDP since it is a final good purchased by a consumer.

GDP stands for Gross Domestic Product, which is the monetary value of all final goods and services produced within a country's borders in a specific time period. The hula hoop is a final good since it is purchased by the end consumer for their own use and is not used as an input in the production of another good. As such, its purchase would contribute to the consumption component of GDP.

However, if the hula hoop is produced and sold in another country, it would not be included in the GDP of the country where it was purchased. Additionally, if the hula hoop is purchased in a second-hand market, it would not be included in GDP since it is not a newly produced good.

Step-by-step explanation:

gg

User Gray Spectrum
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