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Jose just purchased new tires for his ten-year-old car. Is this purchase counted towards GDP?*

A. Yes
B. No

1 Answer

3 votes

Answer:

A: yes

Step-by-step explanation:

What is not included in GDP

Intermediate goods (they are a finished product)

Transfer payments and non-market activities (he paid for them, and it did not state that an exchange was made)

Used goods (they are new tires)

Illegal goods (tires are not illegal)

_______________-_-_______________

What is included in GDP

Consumption

Business investment

Government spending on goods and services

Net exports

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