Activities included (and not included) in the calculation of GDP
The gross domestic product (GDP) of the United States is defined as the all in a given period of time.
Based on this definition, indicate which of the following transactions will be included in that is, directly increase) the GDP of the United States in 2018.
Scenario 2018 GDP
Included Excluded
Graincorp, a U. S. agricultural company, produces corn syrup at a plant in Iowa on September 25, 2018. It sells the corn syrup to Crunchy's for use in the production of cereal that will be made in the United States in 2018. (Note: Focus exclusively on whether production of the corn syrup increases GDP directly, and ignore the effect of production of the cereal on GDP.) The Jones family buys an antique silver platter at an auction in upstate New York on March 27, 2018. Athleticus, a U. S. shoe company, produces a pair of sneakers at a plant in Vietnam on March 27, 2018. Athleticus imports the pair of sneakers into the United States on May 18, 2018. Fastlane, a Japanese automobile company, produces a sedan at a plant in Indiana on December 9, 2018. A family buys the sedan on December 24. Awake Cafe, a U. S. coffee company, produces a latte at its location in Minneapolis on January 14, 2018. It sells the latte to a customer immediately.
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Activities included (and not included) in the calculation of GDP
The gross domestic product (GDP) o...
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