When measuring GDP for a particular year, economists exclude the value of the used furniture bought and sold because a. It is not reported anywhere. b. It was counted in GDP in some previous year. c. It is a durable good. d. The value needs to be averaged over a specified number of years.

Question

Kate

Business

10 April, 12:21

When measuring GDP for a particular year, economists exclude the value of the used furniture bought and sold because a. It is not reported anywhere. b. It was counted in GDP in some previous year. c. It is a durable good. d. The value needs to be averaged over a specified number of years.

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Answers (2)

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Hunter Alexander · Answer 1

The correct answer is letter "B": It was counted in GDP in some previous year.

Explanation:

Goods that were sold in previous periods and are resold at a different time are not accounted for the Gross Domestic Product (GDP) in the second computation. This is the case of land, houses, automobiles, and furniture. They are only taking into consideration the first time they are sold except houses that could be accounted for a second time in front of major reconstruction.

Morgan Spence · Answer 2

Answer: b. It was counted in GDP in some previous year

Explanation: The size of a nation's economy is expressed as its gross domestic product (GDP). The GDP measures the value of the output of all goods and services produced in a year within a country as a result it does not measure the value of goods and services left over from previous years such as old furniture, old houses etc. Also not included in a country's GDP are used goods bought or sold. This is because they were produced in a previous year and are part of that year's GDP only.