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Which of the following events has no effect on GDP? A. You buy a 1955 Chevy from a friend. B. The...

Question:

Which of the following events has no effect on GDP?

A. You buy a 1955 Chevy from a friend.

B. The Department of Transportation resurfaces a road.

C. Your friends make a music CD that doesn't sell any copies.

D. A college buys printers.

E. You buy a bottle of Japanese wine.

Gross Domestic Product (GDP)

GDP is define as the money value of all the final goods and services produced in a country in a particular time period,i.e., a year. The measurement of GDP doesn't include transaction of second hand goods.

Answer and Explanation:

Ans: You buy a 1955 Chevy from a friend.

Explanation:

All other option except option A are first hand transactions. But option A is a secondhand transaction. So, this transaction has no effect on current GDP.

Thus, option A is correct answer.


Learn more about this topic:

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Gross Domestic Product: Using the Income and Expenditure Approaches

from Economics 102: Macroeconomics

Chapter 4 / Lesson 2
34K

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