Question

Answer Yes or No for each of the following activities if they should be included in...

Answer Yes or No for each of the following activities if they should be included in the 2016's GDP for the United States? Please explain your reasoning for each answer given.

(a) The value of a loan taken out 2016 by a car buyer buying an American made car produced in 2016.

(b) An American made printer produced in 2016 that was purchased by Best Buy in 2016.

(c) The commissions a stockbroker earns in 2016 for work done that year.

(d) The value of an American made sweater produced in 2016, but not sold until 2017. (e)

The Social Security Benefits received by an American citizen in 2016.

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Answer #1

No. loans that are made out of reserves from the banking system are not considered a part of GDP because nothing is produced

No. This is an intermediate good while GDP uses only final goods and services

Yes. Commission is considered as a part of salary and it is earned which means it is a part of income

Yes. it does not matter whether it is sold or not but it is produced for final consumption and this matters for GDP

No. Social security payments are unilateral and they are not a part of GDP.

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