All the following will be included in a country's GDP EXCEPT:
A) the government's spending on public education.
B) households' purchases of government bonds for investment.
C) firms's purchases of new machinery to carry out more production.
D) other countries' purchases of goods and services produced in the country.

Question

Quizplus · Accepted Answer

Purchases of government bonds are not included in GDP calculations because they are considered financial transactions rather than expenditures on goods and services. GDP measures the value of goods and services produced within a country, including government spending, business investments, and exports, but not financial investments like bond purchases.

All the Following Will Be Included in a Country's GDP