Answer to Question #85789 in Macroeconomics for Elizabeth

Question

What goods and services count towards GDP

Answer 1

According to Economics McConnell and Brue, GDP is the total market value of all final products and services produced within a year, regardless of the source of resources, imported or domestic. Final products and services should be understood as goods and services that are purchased for final use, and not for resale, further processing or processing. However, when calculating GDP, one should not take into account non-productive transactions. Non-production transactions are of two types: financial and trade second-hands goods. The first group includes: government transfer payments, private transfer payments and securities transactions. The second group covers the sale of used goods.