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Question 4
Sally purchased a Ford Fusion for $25,000 in 2018. Today, Sally sold the car to Darien for
$18,000. How does this affect the CURRENT GDP?

Respuesta :

Answer:

It doesn't affect it because it's a used good

Explanation:

Used goods ARE NOT counted.  Goods are only counted in GDP during the year when they were produced, and/or the first time they are sold.

The selling of the used car by Sally will not have any effect on the GDP because such transaction has already been accounted earlier during the time of production and selling. Hence, no changes in GDP.

Why used goods are not included in GDP?

Expenditure on used goods isn't always a part of GDP due to the fact those items had been a part of GDP withinside the duration wherein they had been produced and all through which time they had been new items.

Counting the sale of used items might be double-counting and might distort the authentic degree of manufacturing for a given duration.

Hence, no changes in GDP as the selling of the used car by Sally has already been accounted earlier.

Learn more about GDP:

https://brainly.com/question/1152672

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