When calculating GDP,purchases of used goods are
A)not included.
B)included at the original price.
C)included at the (current)used price.
D)included by taking the original price and subtracting the (current)used price.
E)included at the original price minus any depreciation.

Question

Quizplus · Accepted Answer

Purchases of used goods are not included in GDP calculations because GDP only measures the value of newly produced goods and services in the economy during the current period. The production of used goods was already counted in GDP in the period when the goods were originally produced, so including their resale would result in double-counting.

When Calculating GDP,purchases of Used Goods Are