If We Included the Purchases of Used Goods in GDP

question 17

Multiple Choice

If we included the purchases of used goods in GDP,

• A) we would be overestimating GDP
• B) we would be underestimating GDP
• C) we would be accurately measuring GDP
• D) the effect on GDP would vary depending on what year the goods were sold new
• E) we could offset any measurement problems by also including purchases of stocks and bonds

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Definitions:

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A square board used in the game of chess, consisting of 64 squares arranged in an 8x8 grid, alternating in color.

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A severe worldwide economic downturn that lasted from 1929 to the late 1930s, marked by massive unemployment, deflation, and a significant drop in economic activity.

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Periods characterized by a significant increase in economic activity and growth, often leading to higher employment and wealth generation.