Question

The table below shows a series of market transactions in the life of an automobile.

Transaction	Time Frame	Cost
Parts sold to car maker	Fall 2017	$13,000 in parts
Factory labor leads to assembled car	Winter 2017	$11,000 in labor
Dealer buys car	Spring 2018	$28,000 for the car
Dealer sells car to customer	Summer 2018	$33,000 for the car

Describe two different ways that these transactions could contribute to gross domestic product (GDP) for the years 2017 and 2018. Which way is used in practice?

Answer 1