You bought an old car a couple of years ago for $1,000 and put about $5,000 of parts and labor into improving it. You sold it yesterday for $3,000. a. How does this sale affect GDP? GDP will increase by $3,000 as a result of this transaction. increase by $4,000 as a result of this transaction. not change as a result of this transaction. increase by $5,000 as a result of this transaction. b. Which option below explains why this transaction does or does not affect GDP? Selling a used car was already counted in a previous year's GDP. is counted as a final good in GDP. "added value" to the economy. is an economic transaction.

A monetary indicator of the market worth of all the finished goods and services produced in a nation over a given time period is called the gross domestic product (GDP).
To compare living standards between countries, using a basis of GDP per capita at purchasing power parity (PPP) may be more useful, whereas nominal GDP is more useful for comparing national economies on the global market.
GDP (nominal) per capita does not, however, reflect differences in the cost of living and the inflation rates of the countries.
The contribution of each industry or sector to the overall GDP can also be quantified.

Therefore, the correct answer is that Selling a used car was already counted in a previous year's GDP.

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