Your parents surprise you with a $500 check. As a result, the U. S. GDP decreases because you have to pay taxes on this income. increases because this is unexpected income to you. remains unchanged because it was counted when your parents earned it. decreases because you will spend it on useless goods.

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Johnathon Hunter

Business

Today, 09:07

Your parents surprise you with a $500 check. As a result, the U. S. GDP decreases because you have to pay taxes on this income. increases because this is unexpected income to you. remains unchanged because it was counted when your parents earned it. decreases because you will spend it on useless goods.

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Rosales · Answer 1

remains unchanged because it was counted when your parents earned it.

Explanation:

GDP is the total value of goods & services produced within an economy, during a period of time.

It can be recorded by following methods : Value Added (by each producer), expenditure (by all consumers), income (of all producers).

There are many precautions while calculating GDP : Gifts, Second Hand goods etc are not included in GDP. Such because these goods have not lead to any new flow of goods & services in economy, the transaction includes mere transfer of ownership. These goods & services had already been included in 'GDP' at time of purchase under expenditure or income method & need not be included at time of gift giving or second hand purchase. If included again, it leads to double counting.

Similarly : Parents surprise gift doesn't affect GDP as it has already been accommodated in it while parents had earned it.