Question

which of these count as part of this years gdp, assuming they all took place this year? select all that apply. the time you spend installing the new battery. purchase of a new battery. paying a mechanic to install a new transmission. purchase of door from a similar car at the junk yard. selling a used car is an economic transaction. “added value” to the economy. is counted as a final good in gdp. was already counted in a previous years gdp. b. which option below explains why this transaction does or does not affect gdp?

Explanation:

GDP measures the market value of all final goods and services produced within a country in a given period. The purchase of a new battery is a final - good purchase and contributes to GDP as it is part of current production. Paying a mechanic to install a new transmission is a service, and services are counted in GDP. The purchase of a door from a junk yard and selling a used car do not affect GDP. A used - car sale is not part of current production as it was already counted in GDP when it was first sold as new. The door from the junk yard is also not part of current production.

Answer:

The transactions that count as part of this year's GDP:

• Purchasing a new battery (because it is a new final good).
• Paying a mechanic to install a new transmission (because it is a service).

The reasons for non - GDP affecting transactions:

• Selling a used car: was already counted in a previous year's GDP.
• Purchase of door from a junk yard: not part of current production.