Which one of the following categories of expenditures is included in a country's GDP for a given year?
A) spending by consumers on final goods and services produced in the country during that year
B) spending by consumers on used goods purchased during that year
C) spending by firms on intermediate goods and services during that year
D) spending on imported goods and services during that year

Question

Quizplus · Accepted Answer

GDP includes all spending on new production of goods and services within a country in a given year. Spending on used goods, intermediate goods (which are used in the production of final goods and are counted in the value of those final goods), and imports (which are produced outside the country) do not count towards the country's GDP.

Which One of the Following Categories of Expenditures Is Included