Will this purchase be recorded in this years gdp

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Unformatted text preview: nted in GDP. EXAMPLE: Sales of Used Goods Suppose you buy a used car tomorrow. Will this purchase be recorded in this year’s GDP statistics? No, a used car does not enter into the current year’s statistics because the car was counted when it was originally produced. Mario just sold his 2002 Toyota to Jackson for $7,000. This $7,000 is not counted in GDP. EXAMPLE: Stock Transactions and Other Financial Transactions Suppose Elizabeth buys 500 shares of stock from Keesha for a price of $100 a share. The total price is $50,000. The transaction is not included in GDP, because GDP is a record of goods and services produced annually in an economy. A person who buys stock is not buying a product but rather an ownership right in the firm that originally issued the stock. For example, when a person buys Coca-Cola stock, he is becoming an owner of the Coca-Cola Corporation. Q uite a bit of economic data can be found on the Web. Go to the Economic Statistics Briefing Room at www.emcp.net/ employment and click on “Employment” if you want to find...
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This document was uploaded on 01/16/2014.

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