The value of corporate stocks and bonds traded in a given year is
A) included in the calculation of GDP because they contribute to the current production of goods and services.
B) excluded from the calculation of GDP because they make no contribution to current production of goods and services.
C) included in the calculation of net private domestic investment.
D) included in the calculation of gross private domestic investment.

Question

Quizplus · Accepted Answer

The value of corporate stocks and bonds traded is excluded from the calculation of GDP because these transactions do not represent new production of goods or services but rather are exchanges of existing assets. GDP measures the value of goods and services produced within a country in a given period, focusing on current production.

The Value of Corporate Stocks and Bonds Traded in a Given