Which of the following transactions would be included in this year's GDP?
A)Johnson purchases a five-year-old house from Smith.
B)Johnson rents a five-year-old house from Smith.
C)Johnson purchases 100 shares of AT&T stock from Smith.
D)Johnson purchases an antique at Smith's garage sale.

Question

Quizplus · Accepted Answer

GDP only includes transactions that involve the production of goods and services within a country's borders. Renting a house from a landlord does not involve the production of new goods and services, but rather the use of an existing asset. Therefore, it is not included in GDP.

The other options (A, C, and D) also do not involve the production of new goods and services within the country's borders, and would not be included in GDP.

Which of the Following Transactions Would Be Included in This