Which of the following would be directly counted in GDP in 2018?
A)kitchen cabinets purchased from Home Depot in 2018 to be installed in a house built in 1997
B)kitchen cabinets built in 1887,extracted from the 1887 home,and installed in a brand new country-style home
C)kitchen cabinets built in 1887,extracted from the 1887 home,and installed in a farm house built in 1950
D)none of the above

Question

Quizplus · Accepted Answer

Only A would be directly counted in GDP as it involves a recent purchase of new goods in 2018.

B and C involve the use of old goods that were not produced during the current year and therefore would not be directly counted in GDP.

Which of the Following Would Be Directly Counted in GDP