ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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YES
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NO
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Either A or B
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None of the above
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Detailed explanation-1: -[Expenditure on used goods is not part of GDP because these goods were part of GDP in the period in which they were produced and during which time they were new goods. Counting the sale of used goods would be double-counting and would distort the true level of production for a given period.]
Detailed explanation-2: -Expert Answer Goods and services produced at home are not included in the GDP.
Detailed explanation-3: -The four components of gross domestic product are personal consumption, business investment, government spending, and net exports.
Detailed explanation-4: -Produced: GDP only counts goods that are produced within the year. Within a country’s economy: GDP counts net exports (exports minus imports). A good counts towards GDP if it is produced in the country. Market value: GDP only counts goods sold in a market.