Monday, February 13, 2017

Included and Excluded GDP

  • Final goods and services
  • Does not include intermediate goods (inputs used to produce goods)
    • Avoid doubling counting
      • Used or second hand sells (includes double count)
      • Gifts or transfer payments (public or private)
    • Social Security, Unemployment compensation, scholarships
      • Stocks and Bonds. No production.
      • Unreported business transaction (Ex. tips) 
      • Illegal activity (black market or underground activity)
      • Non-market activity (volunteering or family work)

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