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
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.
- Winter '14