In 2009, Ozzie purchased a 1999 Ford Escort from his neighbor for his son, purchased a 1999 "one owner" Camry from Larchmont Toyota for his wife, bought a 2009 new Ford for himself, and sold his 1993 Dodge Caravan to his teenage nephew. Which, if any, of these transactions will be included in GDP in 2009?

Question

Quizplus · Accepted Answer

Only the purchase of the new Ford will be included in GDP as it is the only transaction that represents current production in the economy. The purchase of the used Ford Escort and Camry does not contribute to GDP as they were already produced and sold in previous years, and the sale of the Dodge Caravan is simply a transfer of ownership and does not represent any new production of goods or services.

In 2009, Ozzie Purchased a 1999 Ford Escort from His