The value of corporate stocks and bonds traded in a given year is:
A) Included in the calculation of GDP because they make a contribution to the current production of goods and services
B) Excluded from the calculation of GDP because they make no contribution to current production of goods and services
C) Included in the calculation of net private domestic investment
D) Included in the calculation of gross private domestic investment

Question

Quizplus · Accepted Answer

The trading of corporate stocks and bonds is a financial transaction and does not represent the production of goods and services, hence it is excluded from GDP calculations.

The Value of Corporate Stocks and Bonds Traded in a Given