Which item is included in the calculation of GDP?
A) expenditure on new construction
B) a retiree's monthly pension benefit
C) buying a house built 10 years ago
D) buying shares of Home Depot stock

Question

Quizplus · Accepted Answer

Expenditure on new construction is considered a part of investment spending, which is included in the calculation of GDP.

Answer: C
 Buying a house built 10 years ago is not included in the calculation of GDP since it is considered a second-hand transaction (i.e., the house was already counted as part of GDP when it was first built).

Answer: D
 Buying shares of Home Depot stock is not included in the calculation of GDP since it is a financial transaction and does not represent actual production of goods or services.

Which Item Is Included in the Calculation of GDP