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Business, 05.02.2021 21:10, santos200154
Activities included (and not included) in the calculation ofGDP
The gross domestic product (GDP) of the United States is defined as thewholesale cost of allfinal goods and services consumed by U. S.-owned companies 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 2018.
Scenario 2018 GDP
Included Excluded
Rotato, a U. S. tire company, produces a set of tires at a plant in Michigan on September 25, 2018. 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 2018. (Note: Focus exclusively on whether production of the set of tires increases GDP directly, and ignore the effect of production of the two-door coupe on GDP.) Calculo, a U. S. electronics company, produces a calculator at a plant in Indonesia on March 27, 2018. Calculo imports the calculator into the United States on May 18, 2018. An accountant starts a client's 2018 tax return on April 14, 2019, finishing it just before midnight on April 15, 2019. Fastlane, a Japanese automobile company, produces a sedan at a plant in Indiana on December 9, 2018. 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, 2018. It sells the latte to a customer immediately.
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Activities included (and not included) in the calculation ofGDP
The gross domestic product (GDP) of...
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