Which of the following counts toward changes in the current GDP?
A)A student buys another year of tuition.
B)You purchase a used stereo from a friend.
C)The government builds a new highway.
D)You fix your own sink.
E)a and c

Question

Quizplus · Accepted Answer

A student buying another year of tuition is considered as an investment in human capital, which is a component of GDP. Similarly, the government building a new highway is considered as a government investment, which also contributes to GDP. However, purchasing a used stereo from a friend or fixing your own sink doesn't directly impact the nation's overall economic production and, therefore, doesn't contribute to GDP.

Which of the Following Counts Toward Changes in the Current