Which of the following transactions would NOT be included in the GDP calculation of a country?...

Which of the following transactions would NOT be included in the GDP calculation of a country?

A.supplemental income paid by the government to a disabled person

B.the value of an increase in unsold inventory of a company

C.salary of a soldier in a country's army

D.price of a new office building

Expert Solution

Option B is the answer.
The value of an increase in unsold inventory of a company.
Unsold inventory of a company is not something which is having a flow. It's value is not added in calculating GDP because of this reason. Every other examples given are something which is added to GDP.

GDP = private consumption + gross investment +government investment + government spending +(export - import)

Rahul Sunny answered 2 years ago

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