Which of the following would be included in the calculation of Gross Domestic Product (GDP)?
A) The value of transfer payments
B) The value of the sale of a used guitar
C) The value of the sale of 1,000 shares of IBM stock
D) The value of spending on new machinery and equipment

Question

Quizplus · Accepted Answer

Only the value of spending on new machinery and equipment would be included in the calculation of GDP as it represents investment in the economy's productive capacity. Transfer payments (A) are not included as they do not represent production of goods or services. The sale of a used guitar (B) and the sale of 1,000 shares of IBM stock (C) are not included since they do not represent current production of goods or services.

Which of the Following Would Be Included in the Calculation