Which of the following does NOT count toward changes in the current GDP?
A) A student pays for another year of tuition.
B) You buy a used car from your parents.
C) The local police station buys new squad cars.
D) The Pentagon buys gasoline.
E) None of these answers is correct.

Question

Quizplus · Accepted Answer

Buying a used car from your parents does not count towards changes in current GDP because it is a secondhand transaction and the car has already been counted towards GDP when it was originally sold as a new car. The other options involve new transactions of goods or services, which would count towards changes in current GDP.

Which of the Following Does NOT Count Toward Changes in the Current