Which of the following would not affect the size of real GDP?
A. Consumer purchase of a new car for personal use.
B. Government purchase of a new car for the military.
C. Business purchase of a new car for a delivery vehicle.
D. Consumer purchase of a rare renaissance painting.
E. Consumer purchase of a haircut
Gross Domestic Product
Gross Domestic Product is a measure of total production in an economy. It is the total market value of all final goods and services produced in a country in a given year.
Answer and Explanation:
Answer: D.Consumer purchase of a rare renaissance painting
Consumer's purchase of a rare renaissance painting is not included in the GDP because GDP only includes the market value of final goods and services produced in the country in a given year. In other words, for anything to be included in the GDP , it has to be the current production. Since the painting was not made this year, it would not be part of the GDP this year.
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Learn more about this topic:
from Economics 102: MacroeconomicsChapter 4 / Lesson 3