In measuring GDP,which of the following is included?
A)the value of preparing meals at home
B)the value of stocks and bonds bought and sold
C)the value of used goods when they are sold
D)the value of increases in business inventories
E)the value of durable consumption goods but not the value of nondurable consumption goods.

Question

Quizplus · Accepted Answer

Increases in business inventories are included in measuring GDP as they represent added production value. Options A, B, and C are not included in GDP calculations as they either involve non-market activities (preparing meals at home), are not part of current production (stocks and bonds), or involve secondhand sales (used goods). Option E is incorrect as both durable and nondurable consumption goods are included in GDP calculations as a part of personal consumption expenditures.

In Measuring GDP,which of the Following Is Included