Jose just purchased new tires for his ten-year-old car. Is this purchase counted towards GDP?*


A. Yes
B. No

Respuesta :

Answer:

A: yes

Explanation:

What is not included in GDP

Intermediate goods (they are a finished product)

Transfer payments and non-market activities (he paid for them, and it did not state that an exchange was made)

Used goods (they are new tires)

Illegal goods (tires are not illegal)

_______________-_-_______________

What is included in GDP

Consumption

Business investment

Government spending on goods and services

Net exports