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: -Only newly produced goods-including those that increase inventories-are counted in GDP. Sales of used goods and sales from inventories of goods that were produced in previous years are excluded. Only goods that are produced and sold legally, in addition, are included within our GDP.
Detailed explanation-2: -Expert Answer Goods and services produced at home are not included in the GDP.
Detailed explanation-3: -Examples include clothing, food, and health care. Investment, I, is the sum of expenditures on capital equipment, inventories, and structures. Examples include machinery, unsold products, and housing. Government spending, G, is the sum of expenditures by all government bodies on goods and services.
Detailed explanation-4: -The GDP is the total of all value added created in an economy. The value added means the value of goods and services that have been produced minus the value of the goods and services needed to produce them, the so called intermediate consumption.