Which of the Following Items Are Included in GDP? for Those

question 93

Essay

Which of the following items are included in GDP? For those items not included, explain why they are not included in GDP.
a. Jane buys newly issued shares of stock in Macro.com, Inc.
b. Ross buys a new pair of jeans at a local department store.
c. Joey has his mustache trimmed at his hair salon.
d. Rachel buys an antique chest at a resale shop.
e. Monica makes her own pasta sauce in her apartment.
f. Phoebe grows her own herbs on her apartment balcony.
g. Michael travels to Austria and buys wine and cheese.

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Definitions:

Underwriter

A professional or company that assesses and accepts the risk of another party, often used in insurance and securities issuing.

Initial Public Offering (IPO)

The first sale of stock by a company to the public, marking the transition from a private entity to a public company.

Gross Spread

The difference between the underwriting expense of a security and the amount received from the selling group.