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In 2020, Claire buys a 2004 Honda Accord from a friend. What components of GDP (if...

In 2020, Claire buys a 2004 Honda Accord from a friend. What components of GDP (if any) would this transaction affect? Explain.

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Answer #1

No, this transaction will not affect any component of the GDP. because GDP stands for value of goods and services produced in a country in a financial year. GDP does not accomodate the value of resold items since it has been already accounted. But while transaction if it involves any commission to the salesman it then that commission will be included into GDP. Since this is the also not the case in above question therefore this transaction will not affect any component of GDP.

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