Activities included (and not included) in the calculation of GDP
The gross domestic product (GDP) of the United States is defined as the ___ all _ ___ in a given period of time.
Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2018.
Scenario 2018 GDP Included 2018 GDP Excluded
Calculo, a U.S. electronics company, produces a calculator at a plant in Indonesia on March 27, 2018. Calculo imports the calculator into the United States on May 18, 2018.
Rotato, a U.S. tire company, produces a set of tires at a plant in Michigan on September 25, 2018. It sells the set of tires to Speedmaster for use in the production of a two-door coupe that will be made in the United States in 2018. (Note: Focus exclusively on whether the production of the set of tires increases GDP directly, and ignore the effect of the production of the two-door coupe on GDP.)
An accountant starts a client's 2018 tax return on April 14, 2019, finishing it just before midnight on April 15, 2019.
Fastlane, a Japanese automobile company, produces a sedan at a plant in Indiana on December 9, 2018. A family buys the sedan on December 24.
Awake Cafe, a U.S. coffee company, produces a latte at its location in Minneapolis on January 14, 2018. It sells the latte to a customer immediately.

1. The gross domestic product (GDP ) of the United States is defined as the monetary value of all finished goods and services in a given period of time. The important thing to note here is that GDP is the market value of all final goods and services produced within a country in a given period of time. This means that intermediate goods are not included.

2. Indication of Inclusion or Exclusion in 2018 GDP:

a) Calculo = excluded

b) Rotato = included

c) An accountant = excluded because of year, 2019

d) Fastline = included

e) Awake = included

Explanation:

1) The importation of the calculator into the United States does not form part of domestic production, and as such will be excluded.

2) Rotato's production on September 25, 2018 will be included, with an exclusive focus on whether the production of the set of tires increases GDP directly.

3) The accountant's work would have been included if it were done in 2018.

4) Fastlane's production will be included.

5) Awake's production will be included.