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Activities included (and not included) in the calculation of GDP
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 2015.
Scenario 2015 GDP Included 2015 GDP Excluded
Calculo, a U. S. electronics company, produces a calculator at a plant in Indonesia on March 27, 2015. Calculo imports the calculator into the United States on May 18, 2015.
Rotato, a U. S. tire company, produces a set of tires at a plant in Michigan on September 25, 2015. It sells the set of tires to Speedmaster for use in the production of a two-door coupe that will be made in the United States in 2015. (Note: Focus exclusively on whether the production of the set of tires increases GDP directly, and ignore the effect of the production of the two-door coupe on GDP.)
An accountant starts a client's 2015 tax return on April 14, 2016, finishing it just before midnight on April 15, 2016.
Fastlane, a Japanese automobile company, produces a sedan at a plant in Indiana on December 9, 2015. A family buys the sedan on December 24.
Awake Cafe, a U. S. coffee company, produces a latte at its location in Minneapolis on January 14, 2015. It sells the latte to a customer immediately.
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Activities included (and not included) in the calculation of GDP
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