Which of the following would be excluded from 2019 GDP? The sale of

Question

a. a 2019 Honda made in Tennessee.
b. a haircut.
c. a realtor's services.
d. a home built in 2018 and first sold in 2019.
e. All of the above should be counted in 2019 GDP.

Answer 1

To determine which of the options would be excluded from the 2019 GDP, we need to consider how GDP is calculated. GDP measures the total value of all final goods and services produced within a country during a specific time period.

Let's analyze each option:

a. A 2019 Honda made in Tennessee: This would be included in the 2019 GDP because it is a final product produced in that year.

b. A haircut: This would also be included in the 2019 GDP, as it is a service provided in that year.

c. A realtor's services: This would be counted in the 2019 GDP since it involves services rendered in that year.

d. A home built in 2018 and first sold in 2019: The production of the home occurred in 2018, and GDP only includes goods and services produced within the specific year. Therefore, while the sale of the home would impact the economy, the value of the home itself is not counted in 2019 GDP because it was not produced in that year.

e. All of the above should be counted in 2019 GDP: This statement is incorrect due to option d.

Thus, the answer is d. a home built in 2018 and first sold in 2019 would be excluded from 2019 GDP.