The calculation of GDP excludes the value of
A) expenditure on durable goods.
B) businesses' purchases of new machine tools.
C) a family member painting the family home.
D) government expenditure on office supplies.
E) households' purchases of shampoo.

Question

Quizplus · Accepted Answer

The calculation of GDP excludes non-market transactions, such as a family member painting the family home, because these activities do not involve a market transaction where money changes hands.

The Calculation of GDP Excludes the Value of