Question

Tyler and Camille both live in Oklahoma. A new-car dealer in Oklahoma bought a new car from the manufacturer for $18,000 and sold it to Tyler for $22,000. Later that year, Tyler sold the car to Camille for $17,000. By how much did these transactions contribute to U.S. GDP for the year?

Answer 1

Answer:

These transactions contribute to U.S. GDP for the year for $22,000

Explanation:

The GDP measures the final monetary transactions (final goods and services produced and sold) made in a year. So, in this case, the final transaction would be when the new car dealership sells the car to Tyler. The sale of used goods should not be considered for the calculation of GDP as well as sales between intermediaries