In 2024, I buy a car made in 2023. Is this investment counted in 2024 GDP?A.YesB.No
Question
In 2024, I buy a car made in 2023. Is this investment counted in 2024 GDP?
A. Yes
B. No
Solution
B.No
The Gross Domestic Product (GDP) measures the value of economic activity within a country. Strictly defined, GDP is the sum of the market values, or prices, of all final goods and services produced in an economy during a period of time.
When you buy a car made in 2023 in 2024, it is not counted in the 2024 GDP. This is because the car was produced in the previous year, and its value was included in that year's GDP. GDP only includes the goods and services produced within the specific year, so a car produced in 2023 would not be included in the 2024 GDP.
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