Which of the following would increase GDP?
A)buying a 10-year-old house
B)purchasing 100 shares of McDonald's stock
C)a $1,000 expenditure on roof repairs after a Florida hurricane
D)a $1,000 contribution to the Red Cross to assist the victims of a Florida hurricane

Question

Quizplus · Accepted Answer

The expenditure on roof repairs would increase GDP as it represents spending on goods or services that create economic activity, in this case, repairs to damaged property after a natural disaster.

Answer: D
 The contribution to the Red Cross would not directly increase GDP as it is not spending on goods or services that create economic activity. However, it could indirectly contribute to GDP by supporting relief efforts that stimulate economic activity in the affected area.

Which of the Following Would Increase GDP