E&S Cooling Co.installs air conditioning systems in new houses for homebuilders and replacement systems for homeowners.Sales of which systems are included in this year's GDP?
A)Sales of replacement systems
B)Sales of both systems
C)Sales of systems in new houses
D)Neither system would be included, because they are always intermediate goods

Question

Quizplus · Accepted Answer

Sales of replacement systems are included in GDP because they are final goods sold to end users, whereas systems installed in new houses are considered part of the investment in residential construction and not counted separately.