GDP does not include the
A)increase in business inventories in the period
B)expenditures by government for newly produced goods and services in a given period
C)value of all transactions in the economy during a given period
D)value of final output during a given period
E)household spending on electricity

Question

Quizplus · Accepted Answer

GDP only includes the value of final output produced in the economy during a given period, not the value of all transactions. While household spending on electricity is a final output and included in GDP, options A and B refer to intermediate inputs and government spending on services, respectively, which are not included in GDP.

GDP Does Not Include the