Which of the following goods and services are
included
in GDP? If the good or service is included
in GDP, in which expenditure category is it
included?
If the good or service is not included
in
GDP, explain why not.
a. Cynthia buys some house paint.
b. Cynthia uses the paint that she purchased to
paint her own house.
c. Bruce hires a painter to paint his house.
d. Randy sells the house that he bought 10 years
ago and uses the proceeds to purchase a newly
constructed condominium.
e. Kishore buys a new Toyota Prius.
f. Kishore buys a 2005 Dodge truck to drive on
the weekends.
g. California lawmakers enact a bill that reduces
retired teachers’ pensions by 15%.