Which of the following transactions will have a direct and immediate effect on GDP?
A)an unemployed worker gets unemployment compensation
B)you sell your used car to a friend
C)you buy some IBM stock
D)a German tourist drinks Canadian beer in a New York City restaurant
E)the value of your Google stock holdings drops drastically

Question

Quizplus · Accepted Answer

D) A German tourist drinking Canadian beer in a New York City restaurant directly contributes to the U.S. GDP because it is a consumption expenditure made within the U.S. economy. The other options do not directly and immediately affect GDP: unemployment compensation (A) is a transfer payment; selling a used car (B) does not contribute to GDP as it is not a new production; buying stock (C) is a financial transaction without immediate impact on GDP; and a change in stock value (E) does not directly affect GDP as it is a change in financial asset value, not a production activity.

Which of the Following Transactions Will Have a Direct and Immediate