Which of the following transactions adds to U.S. GDP for 2015? In 2015, Frank\'s

Question

Which of the following transactions adds to U.S. GDP for 2015? In 2015, Frank's Feta manufactures 2000 pounds of cheese that will eventually be sold to grocery of 2015. stores. The 2000 pounds of cheese remains in Frank's inventory at the end b. An Irish marketing consultant works in Richmond during the summer of 2015 and earns$45,000 during that time. C. When Len and Mika were both single,they lived in separate apartments and each paid $700 in rent. Len and Mika got married in 201 S and they bought a previously unoccupied house that, according to reliable estimates, could be rented for $1,500 per month. d. All of the above transactions add to US, GDP for 2015.

Explanation / Answer

The gross domestic product (GDP) can be defined as the total market value of goods and services produced during a current financial year in the domestic territory of the country.

Since Franks Feta manufacturer, produces 2000 pounds of cheese in 2015, in the domestic territory of the country, so it will come under the GDP.

Since the Irish market consultant produces his services in the domestic territory of the country, so it will be counted in the U.S. GDP.

Since the house purchased by Len and Mika in 2015 could be rented out for 15000 per month and this house was earning 14000 rent earlier.

Since rent is generated in the financial year in 2015, so it will be included in the GDP of U.S.

Hence option a, b and c will be included in the U.S. GDP.

Hence option d is the correct answer which is all of the above.

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