In 2011, Ozzie purchased a 2008 Ford Escort from his neighbor for his son, purchased a 2007 ʺone ownerʺ Camry from Larchmont Toyota for his wife, bought a 2011 new Ford for himself, and sold his 2000 Dodge Caravan to his teenage nephew. Which, if any, of these transactions will be included in GDP in 2011?

Question

Quizplus · Accepted Answer

Only the purchase of the new Ford will be included in GDP as it is a newly produced good. The purchases of the used Ford Escort and Camry do not add to GDP as they are not newly produced goods, and the sale of the Dodge Caravan does not contribute to GDP as there is no production involved.

In 2011, Ozzie Purchased a 2008 Ford Escort from His