Question

The gross domestic product (GDP) of the United States is defined as the all in a given period of time. Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2017. Scenario 2017 GDP Included Excluded Tasty's, a U.S. fast-food company, produces a hamburger at one of its many St. Louis locations on January 8, 2017. It sells the hamburger to a customer that same day. The Jones family buys an antique silver platter at an auction in upstate New York on March 15, 2017. Roadway Motors, a U.S. automobile company, produces a convertible at a plant in Germany on March 15, 2017. Roadway Motors imports the convertible into the United States on May 3, 2017. Fastlane, a Japanese automobile company, produces a sedan at a plant in Indiana on December 12, 2017. A family buys the sedan on December 24. Treetopplers, a U.S. lumber company, produces wood at a plant in Oregon on September 19, 2017. It sells the wood to Buildit and Partners, a developer, for use in the production of a new house that will be built in the United States in 2017. (Note: Focus exclusively on whether production of the wood increases GDP directly, and ignore the effect of production of the new house on GDP.)

Answer 1