Question

If I need to fix my garden, and I buy an equipment made in Italy by a housewife, is this transaction part of the GDP's "consumption?"

Answer 1

False

GDP which is the production value of final goods and services within the boundary of a country in a financial year

It is generally measured on quarterly or yearly basis

GDP has five major parts that are consumption, investment, government spending export and import

GDP only includes the domestic production and not the outside production

Consumption includes only the domestic produced goods and services

But in the given statement the person who fix his garden imports an equipment that is made outside of the country that is in the Italy

So this will counted under import not the consumption