Which of the following is included in GDP?
A) A newly laid-off worker receives his $400 unemployment compensation check from the state government.
B) A college senior receives a $1,000 graduation gift from a grandparent.
C) You buy a $12 snow shovel to have on hand for the next snow storm.
D) You purchase $300 worth of clothes from a thrift shop selling second-hand clothing.

Question

Quizplus · Accepted Answer

Only the purchase of the snow shovel (C) is included in GDP as it represents a final good or service that is sold in the current period. The other choices do not represent current production of goods or services. The unemployment compensation (A) is a transfer payment and not included in GDP. The graduation gift (B) is a transfer of assets and not a current production of goods or services. The second-hand clothing (D) is also not included in GDP because it represents an intermediate good that was already included in GDP when it was originally produced.

Which of the Following Is Included in GDP