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Which of the following would not affect the size of real GDP? A. Consumer purchase of a new car...

Question:

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.


Learn more about this topic:

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Gross Domestic Product: Definition and Components

from Economics 102: Macroeconomics

Chapter 4 / Lesson 3
63K

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