You buy a new bed that was produced last year. GDP will increase this year by the value of the bed because the bed was sold this year.

Question

Quizplus · Accepted Answer

GDP reflects only the market value of goods and services produced within a country during a given period of time (usually a year). The production of the bed would have been reflected in GDP in the year it was produced, not in the year it was sold. The sale of the bed does not increase GDP unless it is part of a newly produced or added product for the current year.

You Buy a New Bed That Was Produced Last Year