GDP: Is it Counted and Where? practice
Not Counted
A family pays $75,000 for a house built three years ago
Investment
A family pays a contractor $100,000 for a house he built for them this year.
Not Counted
A homemaker works hard caring for her spouse and two children
Consumption
An accountant pays a tailor $175 to sew a new suit for her.
Investment
Apply Computer Co. builds a new factory in the United States.
Investment
At the end of a year, flour-milling firm finds that its inventories of grain and flour are $10,000 above the amounts of its inventories at the beginning of the year
Investment
Ford Motor Co. buys new auto-making robots.
Not Counted
R.J. Reynolds Co. buys control of Nabisco.
Government
The government increases its defense expenditures by $1 million
Not Counted
The government makes a $300 Social Security payment to a retired person.
Not Counted
You buy General Motors Corp. stock for $1,000 in the stock market.
Net Exports
You buy a new Toyota that was made in Japan.
Consumption
You pay $300 a month to rent an apartment
Consumption
You say tuition to attend college.
Consumption
You spend $7,000 to attend a movie.
