Business, 12.10.2021 17:00, lovelarissa
Activities included (and not included) in the calculation of GDP
The gross domestic product (GDP) of the United States is defined as the market value of all final goods and services produced within the United States 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 2020.
Scenario 2020 GDP
Included Excluded
1. The Jones family buys an antique silver platter at an auction in upstate New York on March 17, 2020.
2. Chocolate Express, a Swiss chocolate company, produces a chocolate bar at a plant in Illinois on December 12, 2020. An elementary school student buys the chocolate bar on December 24.
3. Graincorp, a U. S. agricultural company, produces corn syrup at a plant in Iowa on September 19, 2020. It sells the corn syrup to Crunchy's for use in the production of cereal that will be made in the United States in 2020. (Note: Focus exclusively on whether production of the corn syrup increases GDP directly, and ignore the effect of production of the cereal on GDP.)
4. Zippycar, a U. S. automobile company, produces a convertible at a manufacturing plant in Minneapolis on January 9, 2020. It sells the car at a dealership in Denver on February 2, 2020.
5. Calculo, a U. S. electronics company, produces a calculator at a plant in Indonesia on March 17, 2020. Calculo imports
Answers: 2
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Answers: 3
Activities included (and not included) in the calculation of GDP
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