Which transaction would NOT be included in the GDP calculation of a country?
A) price of a new office building
B) salary of a soldier in a country's army
C) supplemental income paid by the government to a person with a disability
D) the value of an increase in unsold inventory of a company

Question

Quizplus · Accepted Answer

GDP includes the market value of all final goods and services produced within a country in a given period. It encompasses investments in buildings (A), government spending on salaries (B), and changes in business inventories (D). However, transfer payments like supplemental income for disabilities (C) do not reflect the production of goods or services and are therefore not included in GDP calculations.

Which Transaction Would NOT Be Included in the GDP Calculation