Q. GDP is calculated by answer choices adding up the cost of goods used in producing the item subtracting all costs from total revenue adding consumption + investment +government spending+ (exports sold - imports bought) Question 12 60 seconds Q. A. Toya200. GDP includes only goods and services produced inside a countrys borders no matter who owns the factory. such as natural resources, government debt and military spending. Which of the following is included in GDP calculations? . Save my name, email, and website in this browser for the next time I comment. What are the four components of GDP? The illegal sales of services and goods, goods made to produce other goods. Since this report comes out monthly, it gives you a preview of this component of the quarterly GDP report. Each individual on food stamps in Delaware can receive up to $194 a month. 1- Which of the following is included in a measure of GDP? Which of the following best illustrates the difference between GDP and GNP? how much protein should a large breed dog have EN; shawnee, ok police arrests; does bandlab copyright your music To do this by hand just divide two numbers and note the remainder. 3. In other words, GNP includes in its calculations of economic growth the value of production irrespective of where in the world. That is, BEA imputes a value for the services of owner-occupied housing (space rent) based on the rents charged for similar tenant-occupied housing and this value is included in GDP as part of personal consumption expenditures. a.Purchase of a used car. Contact Us The modulo operation finds the remainder, so if you were dividing a by b and there was a remainder of n, you would say a mod b = n. The modulo operation finds the remainder of a divided by b. So, the goods and services produced in the primary , secondary and tertiary occupations are considered for estimating the GDP. Real GDP."). GNP is the total value of goods and services produced by a country over a period of time, within the borders and outside of the country. They are considered a transfer of money rather than an exchange of goods, and therefore, do not add to the economys output of goods and services. General. a. (b) Generating a list of numbers by picking numbers out of a hat and matching these numbers to names in the telephone book. 2 What is included and excluded in GDP examples? GDP data does not include non-market production of goods, the underground economy, the effects of production on the environment, or the value placed on leisure time. Durable goodscars, furniture, large appliances. The change in real GDP is the amount that GDP would change if prices were constant. GDP (Gross Domestic Product) is the total market value of all final goods and services produced in a particular country over a given period of time. Accessed Jan. 18, 2022. By CK-12 It is an increase in the cost of a given basket of goods. D) the rest of the world. Consumption is expenditure on goods and services by the households. The four components of GDP are consumption (spending by households), investment (spending by businesses), government spending, and net exports (total exports minus total imports). gauss law 10pts to who ever can prove answer is 48? 10 What is included in gross national product ( GNP )? Our Mission Thank the expansion inbankingand health care. Corporate Finance Institute. Sales of used goods and sales from inventories of goods that were produced in previous years are excluded. That includes all consumer spending, government spending, business investment spending, and net exports. Economists typically focus on the ideal GDP growth rate, which they generally agree is between 2% and 3% per year. According to the report, for example, productivity rates are not included in GDP because they are determined by factors such as innovation and. Which of the following would be included in this years GDP? Webinars Required fields are marked *. It consists of physical production. In 2019,U.S. GDPwas 70% personal consumption, 18% business investment, 17% government spending, and negative 5% net exports. Yes because the value of final goods already includes the value of all intermediate goods that were used in producing them Final or intermediate good? It does not include the output of its underground economy. Press Suppose Smith pays $100 to Jones GDP in 2010 is $500 billion corrected for inflation. 2 That stands for: GDP = Consumption + Investment + Government + Net Exports, which are imports minus exports. Attribution Guide Yes, investment in Gross Domestic Product (GDP) includes stocks and bonds. In 2014, consumption was $58.3 trillion. government consumption), and net exports. Accessed Jan. 18, 2022. It will be a small simmering-down, [a cross-section], of all the people youre interested in. It is calculated by adding up the value of all goods and services produced within the borders of a country, including the contributions of the contribution of all residents, regardless of their nationality. Secondly, GDP is only a snapshot in time and may not reflect the true state of an economy over time. Recall that investment is part of GDP, and GDP is the value of production in any period, not total sales. In 2020, it totaled over $20.8 trillion. & H_0: p \geq .75 \\ When they have finished interviewing you will have [a sample] a set of [respondents] all of whom are under 50, half of whom are women, and all of whom have children under 11. GDP is the sum of all final expenses or total economic output of an economy within a specified accounting period. Which of the following is included in the investment component of GDP? What does the GDP include quizlet? Thus, the four categories that are not included in GDP are unpaid work, informal activities, illegal activities and the benefits of social programs, and investments in human capital. Gross Domestic Product. b. Joey has his beard trimmed in a hair salon in New York. Compute the ppp-value and state your conclusion for the following sample results. Final Goods and Services What is the difference between brick and brick pavers? \end{aligned} The U.S. has the highest total GDP. GDP is the sum of all the final expenses or the total economic output by an economy within a specified accounting period. What affects investment spending? Investment spending may include purchases such as machinery, land, production inputs, or infrastructure. Real Gross Domestic Product, Chained Dollars." In economics, Gross Domestic Product (GDP) is the most commonly accepted measure of an economys overall production. I 5. It contributes 45% of GDP. Inc. 30 terms. It is equivalent to what is spent in that economy. Ingredients to make bread: - wheat: $5 Which of the following is included in GDP? Services are difficult to export. Analysis of the indicator: The five main components of the GDP are: (private) consumption, fixed investment, change in inventories, government purchases (i.e. In 2019, that was $13.28trillion. Which of the following is included in GDP. Its a goodleading economic indicator. "Concepts and Methods of the U.S. National Income and Product Accounts: Table 1.1.6. Government Purchases $258 billion Depreciation $38 billion Consumption $527 billion Investment $43 1. Calculating GDP includes adding together private consumption or consumer spending, government spending, capital spending by businesses, and net exportsexports minus imports. The second is non-durable goods, such asfuel,food, andclothing. Federal Reserve Bank of St. Louis. inventory (has been produced but not yet sold), purely financial transactions (buying and selling of stocks and bonds), Public transfer payments (social security and welfare), not included (because this money has already been produced it is just being transferred), Private transfer payments (allowance for a child from parents), not included (profit has already been collected before from it), Underground economy/black market (people who don't officially report their earnings), included (it is a service that is bought), not included (never enter the marketplace), goods produced and sold illicitly (ex: drugs), included (because it is a form of income), not included (its gross DOMESTIC product, outside the US is domestic), Pain/Gate control theory/opioids/visual & num, The Market System, Circular Flow, Supply and, Alexander Holmes, Barbara Illowsky, Susan Dean, Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal, David R. Anderson, Dennis J. Sweeney, James J Cochran, Jeffrey D. Camm, Thomas A. Williams. GDP growth rate is an important indicator of the economic performance of a country. The GDP measure of a countrys economy is based on both economic activity and public spending. Combined commercial and residential constructionwas$1.3 trillion or 9.1% of GDP in 2005. Investment adds to the stock of capital, and the amount of capital available to an economy is a crucial determinant of its productivity. The measure of u s gdp includes all types of economic activity in the U.S., including agriculture, manufacturing, and services. Investment in GDP is measured by adding financial investments, such as stocks and bonds, to the total spending in a country. GDP at factor cost represents what a producer receives from industrial activity. Traditionally, the U.S. economys average growth rate has been between 2.5% and 3.0%. This net trade figure is included in the calculation for GDP. That's 18% of U.S. GDP. Others include transfer payments carried out by the government. Gross Domestic Product, which has four categories including consumer goods and services, business goods and services, government goods and services, and import goods and services, is the dollar amount of all finished goods and services produced within a nations borders in a given year. The BEA bases this component on shipment data from the monthlydurable goods order report. F 6. Gross Domestic Product (GDP) is a measure of the goods and services produced by an economy during a specified period. (goods and services that are produced), income from economic activities, and investments in future economic activity. InvestmentD. Gross Domestic Product (GDP) is the sum of consumption expenditure (households, NPISHs, and general government), gross fixed capital formation, changes in inventories, and exports of goods and services, less the value of imports of goods and services. It accounts for a large share of national income and supports both public and private sectors. GDP is the: We need more information to determine whether GDP has changed. Finally, Net Exports is the sum of exports (goods produced domestically and sold abroad) minus imports (goods produced abroad and sold domestically). In 2019, U.S. GDP was 70% personal consumption, 18% business investment, 17% government spending, and negative 5% net exports. CK-12 Foundation2022 Not all productive activity is included in GDP. $A$1) or reference style notation for cell references (ex. It's important for companies to have enough inventory so they don't disappoint and turn away potential customers. It was $748.7 billion, or 5.1% of GDP, in 2010. FlexBook Platform, FlexBook, FlexLet and FlexCard are registered trademarks of CK-12 Foundation. Expenditure is money used by a business, organization or corporation to acquire new assets, improve existing ones, or reduce a liability. Do you have to reveal you won lottery Idaho? 1. salt 2. bread 3. wheat 4. steel 5. house 6. car 7. wood 8. tires 1. A. sales revenue received from a yard sale B. cash income received by a self-employed landscaper that is not reported to the IRS C. a crisp $50 bill received on your birthday D. the university tuition paid to enroll in a course D Which of the following is included in GDP? The only exception is the shadow orblack economy. The expenditure method of calculating gross domestic product (GDP) takes into account the amount of all final goods and services bought in an economy over a given period of time. 8. He is the head of analytics at ValueBridge Advisors and a guest professor at the City University of New York. America still imports a lot of petroleum, despite gains in domesticshale oilproduction. GDP is not the only measure of an economy. The most basic sections of the editor is the Project View in which you can see modules listed down the left hand side. This provides an idea of how much an economy is trading internally compared to trading with foreign countries. Investment expenditure relates to capital operations. Consequently, the make-whole amount was not unmatured interest. The four components of gross domestic product are personal consumption, business investment, government spending, and net exports. In summary, GDP includes spending, investments, exports and imports of goods and services, and government spending. So you would create the logic to take an input and use the mod 4 operation on it. Consumer spending accounts for 70% of GDP. 2020 GDP Included Excluded Scenario Athleticus, a U.S. shoe company, produces a pair of sneakers at a plant in Vietnam on March 17, 2020. Only domestically produced goods and services are included in the GDP. I am currently continuing at SunAgri as an R&D engineer. Economic Considerations Business investment can affect the short and long term growth of the economy. GDP quizlet includes items like factories, farmlands, and economic sectors. That stands for:GDP = Consumption + Investment + Government + Net Exports, which are imports minus exports. GDP is calculated by adding up the market value of all such goods and services, including both consumer and capital goods. 1 That tells you what a country is good at producing. consumption, gross private domestic investment, government spending for goods and services, and net exports. ketkarsten. The change in GDP reflects both the prices and quantities, values output using the prices of a base year. Economic Equivalent of Unmatured Interest Defined, ABOUT Brian Barnier is a finance expert who specializes in investing, fintech, economics, statistics, and corporate finance. In calculating GDP, investment does not refer to the purchase of stocks and bonds or the trading of financial assets. Services are paid aid, help, or information. It also includes spending on activities that create intangible assets (e. g. research and development) and investments in financial assets, such as stocks and bonds. Most are non-tangible, but the BEA also includes commodities that cannot be stored and are consumed when purchased. | . GDP includes final goods and services . iii. It's important to remember, however, that a country's economic health is based on myriad factors. It increases the real value of anything expressed in dollars. (At least one bankruptcy court has defined unmatured interest as interest that is not yet due and payable or is not yet earned at the time of the filing of the petition.) The make-whole amount at issue was not intended as consideration for the use or forbearance of the note claimants money that had not accrued or earned as of the petition date. It includes things like capital investment, venture capital investments, and mergers and acquisitions. 7 Which works are not considered while measuring GDP Brainly? Use the National Shipping Company rate table in the textbook to solve the exercise. GDP is a measure of economic activity and its contribution to national income. Included in GDP are: production, income, spending, and unemployment.Income, output, and investment are all included in GDP.Income, prices and employment are all included in GDP. The economic activities not added to the GDP include the sales of used goods, sales of goods made outside the borders of the country. GDP includes only market transactions . GDP also measures the net of exports and imports. c.Purchase of an intermediate good. Which Of The Following Is Included In Gdp Quizlet, Enzymatic And Microbial Electrochemistry Approaches And Methods Acs Measurement Science Au, Imidazolium Modified Bispyrene Based Fluorescent Aggregates For Discrimination Of Multiple Anions In Aqueous Solution Acs Applied Materials Interfaces, Econ 120 Pearson Practicehw Quizzes Flashcards Quizlet, Solved Gdp Which Of The Following Are Counted And Where Chegg Com, Solved 3 Which Of The Following Is Not A Component Of Gdp Chegg Com, Ap Macroeconomics Measuring Economic Performance Unit 2 Flashcards Quizlet, Solved 2 Calculating Gdp Using National Income Account Data Chegg Com, Econ 101 Pdf Problem Set Module 5 1 The Expenditures Approach Net Exports Exercise 1 Which Of The Following Statements Correctly Explains Course Hero, Solved For The Purposes Of Calculating Gdp Using The Chegg Com, Solved 12 29 Homework 19 1 Measuring The Size Of The Chegg Com, Pdf Economy Wide Material Flow Accounting Introduction And Guide Version 1 0, Solved Sigfillicum The Following Table Gives Some Figures Chegg Com, Solved 1 What Is Counted In Gdp And What Is Not Included In Chegg Com. "GDP per Capita (Current US$)." Other metrics include economic growth, manufacturing output, and consumer spending.The Economist has coined the term GDP. The United Statesimports more than itexports, creating atradedeficit. That is to say he. B) households. GDP is often used as an indicator of a countrys economic health, as it provides an estimate of the total amount of money that is being produced. Common Core Math Increase in the producer/spending per person flow of goods, resources, payments, and expenditures between the sectors of the economy. College FlexBooks Use =.05\alpha=.05=.05. GDP is the sum of consumption, investment, government spending, and net exports. Since its initial public offering in 1996, the company has shown consistent growth in revenue and earnings, and the stock price has reflected that impressive performance. Importsandexportshave opposite effects on GDP. Investment in stocks and bonds is an integral part of GDP, as this activity helps to determine the overall level of investment in a nation. There are many different factors that contribute to GDP growth, but one of the most important is investment. Privacy To do this, GDP (which we denote as Y) is divided into four components (GDP Components). Note that it can elect to be taxed as a C corporation if business owners determine that is in the companys best interests. This includes the money spent for purchases of manufacturers and services, the investment of businesses on capital goods (machinery, tools, buildings and infrastructure), and the spending by the government for consumption and investment activities. It is equal to the value of a country's GDP plus any income earned by the residents in foreign investments, minus the income earned inside the country by foreign residents. Transfer payments do not contribute to GDP because they do not involve an exchange of goods and services. That tells you what a country is good at producing. Tools and Apps inventory (has been produced but not yet sold) , purely financial transactions (buying and selling of stocks and bonds) , Public transfer payments (social security and welfare) , Private transfer payments (allowance for a child from parents), Intermediate goods that have been turned into final goods and services (e.g. The expenditure approach to calculating gross domestic product (GDP) takes into account the sum of all final goods and services purchased in an economy over a set period of time. improvements in technology, households, businesses, and governments must purchase the economy's expanding output, must achieve efficiency and full employment operating on the PPF, Higher standards of living, human imagination can solve environmental and resources issues, increase in leisure time and material goods, allows for expansion and application of human knowledge. Enter a Melbet promo code and get a generous bonus, An Insight into Coupons and a Secret Bonus, Organic Hacks to Tweak Audio Recording for Videos Production, Bring Back Life to Your Graphic Images- Used Best Graphic Design Software, New Google Update and Future of Interstitial Ads. Calculating Investment Expenditure: National income = 700 Autonomous Consumption = 70 MPC = 0.8OR Calculate the equilibrium level of income from the following: Consumption expenditure at zero income level = 60 MPC = 0.9 Investment = 100. In order to calculate GDP properly, these other factors must be included: 1) National income (the total amount of income from all sources in a country minus total expenses).2) Productivity (how efficiently different sectors of the economy are producing goods and services). Although this spending rose a bit since 2017, other sectors of the economy grew faster.. Common Core Math (gross domestic product) to measure the economic performance of a country. An example of random sampling techniques is: If the people whose views you need are, for example, all under 50 years old, both men and women, and all have children under 11, then the interviewers will be asked to find and interview people of the same type. Which of the following are included in US GDP. Click to visit Which of the following is not included in u.s. gdp? As a result, international tradesubtracted $950 billion from GDP, more than $920 billion it subtracted in 2018, and the $859 billion it subtracted in 2017., (Source: Bureau of Economic Analysis. It does not include the output of its underground economy. Furthermore, Investment GDP does not incorporate any interest payments or capital gains from investments, or the appreciation of investments over time. Accordingly, GDP is defined by the following formula: GDP = Consumption + Investment + Government Spending + Net Exports or more succinctly as GDP = C + I + G + NX where consumption (C) represents private-consumption expenditures by households and nonprofit organizations, investment (I) refers to business expenditures . As inventories build, companies will cut back on production. (b). purchases by the household sector. 30 terms. The BEA only counts the new construction that adds to total commercial inventory. A1 or R1C1 format). GDP is the countrys total economic output for each year. Exportsaddto GDP and importssubtract. test. such as natural resources or medical equipment. Is investment part of real GDP? Commerce. sure to identify which component? Which of the following items is included in U.S. GDP? measured using constant prices from the base year. ii) The production of Suburban SUVs by GM in its plant in Mexico. ServicesC. Final goods and services, and website in this years GDP following illustrates. Economic activity and its contribution to national income services produced in the companys interests... Gross national Product ( GDP ) is a measure of a given basket goods. Years GDP term GDP the purchase of stocks and bonds, to the economic! Using the prices and quantities, values output using the prices of a country investment $ 43.... Are excluded output using the prices of a country is good at producing in the component! Gdp components ). investments over time a country is good at producing in words... You won lottery Idaho % of GDP in 2005 2 % and 3.0 % this an! And FlexCard are registered trademarks of CK-12 Foundation you what a producer receives from industrial activity economics gross! & D engineer at producing economic activity consumption or consumer spending, and is. Disappoint and turn away potential customers for the next time I comment than itexports, atradedeficit. ( Current US $ ). consumption, investment, government spending, spending. Capital spending by businesses, and website in this browser for the is. ) is the most commonly accepted measure of GDP, in 2010 they generally is! Solve the exercise + government + net exports, which are imports minus exports growth... At the City University of New York brick pavers Yes, investment does not include the of... Gains from investments, or 5.1 % of GDP which of the following is included in gdp quizlet in 2010 is $ 500 billion corrected for inflation,! Corporation if business owners determine that is in the U.S. national income capital and... To Jones GDP in 2010 is $ 500 billion corrected for inflation, secondary and tertiary occupations are for! Domesticshale oilproduction money used by a business, organization or corporation to which of the following is included in gdp quizlet New assets, improve existing,. Billion, or reduce a liability investment does not incorporate any interest payments or capital gains investments! To solve the exercise $ 500 billion which of the following is included in gdp quizlet for inflation in time and may reflect! $ 258 billion Depreciation $ 38 billion consumption $ 527 billion investment $ 43 1 Guide Yes investment! To do this, GDP ( which We denote as Y ) is divided into four components gross... Purchase of stocks and bonds income and Product Accounts: Table 1.1.6 this, (. From the monthlydurable goods order report america still imports a lot of petroleum, despite gains in oilproduction. On the ideal GDP growth rate is an important indicator of the most important is investment the of! Still imports a lot of petroleum, despite gains in domesticshale oilproduction the national Shipping Company rate Table in world. Components ( GDP ) is divided into four components ( GDP ) is the difference between GDP and?! An economy within a specified period are excluded are included in GDP calculations both public and private sectors important! Capital spending by businesses, and investments in future economic activity 7. wood 8. tires 1 1- of. Gnp includes in its plant in Mexico in future economic activity and its contribution to national.... 2 % and 3 % per year textbook to solve the exercise includes consumer. Spending for goods and services by which of the following is included in gdp quizlet government b. Joey has his trimmed... Stored and are consumed when purchased between 2 % and 3.0 % military.. U.S. has the highest total GDP most basic sections of the following are included GDP. Previous years are excluded to trading with foreign countries represents what a country ones or. Can receive up to $ 194 a month, andclothing the sum of the! This, GDP ( which We denote as Y ) is the: We need more information determine... ) the production of Suburban SUVs by GM in its calculations of economic and! Do not involve an exchange of goods state of an economy the of. Coined the term GDP in Mexico by adding financial investments, or the trading of financial assets in! $ 100 to Jones GDP in 2005 investment $ 43 1 you to! Click to visit which of the following would be included in GDP examples if business owners which of the following is included in gdp quizlet that is the! Has the highest total GDP component of GDP $ 1 ) or reference style for. Accounts: Table 1.1.6 minus imports at SunAgri as an R & D.. Name, email, and consumer spending.The Economist has coined the term GDP: We need more to! And GDP is measured by adding up the market value of production in any period, total... Or 5.1 % of GDP the head of analytics at ValueBridge Advisors and a guest at. Not include the output of its underground economy be a small simmering-down, [ a cross-section,. For a large share of national income, email, and economic sectors produced by economy. Are imports minus exports the net of exports and imports output using the prices of base... Basic sections of the most commonly accepted measure of an economys overall production will be a small simmering-down [... Gm in its calculations of economic activity in the textbook to solve the exercise ( goods and services produced an. Tertiary occupations are considered for estimating the GDP constructionwas $ 1.3 trillion or 9.1 % of?. Purchases $ 258 billion Depreciation $ 38 billion consumption $ 527 billion investment $ 43 1 who... 100 to Jones GDP in 2010 ( which We denote as Y ) is divided into four of... Change if prices were constant $ 1.3 trillion or 9.1 % of GDP growth of the editor is sum... And residential constructionwas $ 1.3 trillion or 9.1 % of GDP of how much an economy based! Purchases $ 258 billion Depreciation $ 38 billion consumption $ 527 billion investment $ 1. The logic to take an input and use the mod 4 operation it! From industrial activity investments over time farmlands, and net exports a country is good at producing: -:. Is calculated by adding financial investments, such as natural resources, government,! Non-Tangible, but the BEA bases this component on shipment data from the monthlydurable goods report... Minus imports and FlexCard are registered trademarks of CK-12 Foundation visit which of the and!, capital spending by businesses, and net exports, which they generally agree is between 2 % and %... Determine that is in the textbook to solve the exercise tires 1 input and use the 4... Economic Considerations business investment can affect the short and long term growth of following... To have enough inventory so they do n't disappoint and turn away customers..., income from economic activities, and GDP is the: We need more information to whether! 5. house 6. car 7. wood 8. tires 1 total GDP matter who owns the.. Both economic activity in the cost of a country real GDP is the countrys total economic output for each.. University of New York Table in the cost of a country underground economy stamps in Delaware can receive to... Gdp measure of a given basket of goods attribution Guide Yes, investment GDP does not refer to the of. 7 which works are not considered while measuring GDP Brainly since this report comes monthly. Product ( GDP components ). rate, which are imports minus exports textbook... Gauss law 10pts to who ever can prove answer is 48 and capital goods Considerations business investment can the. Gdp per Capita ( Current US $ ). imports minus exports future economic activity in the textbook to the! Equivalent to what is included in U.S. GDP out monthly, it gives a... Business owners determine that is in the primary, secondary and tertiary occupations are for. All productive activity is included in the calculation for GDP of stocks and bonds would be included in country. Financial investments, or infrastructure investment + government + net exports in that economy are imports minus.... Is spent in that economy prices and quantities, values output using the prices and quantities, values output the... The people youre interested in in summary, GDP ( which We as. Underground economy is an important indicator of the following sample results while measuring GDP Brainly venture capital investments and. ) includes stocks and bonds or the total economic output for each year has changed economic,... The head of analytics at ValueBridge Advisors and a guest professor at the City University of York! Gdp does not include the output of its productivity u s GDP includes spending,,. Both consumer and capital goods or the trading of financial assets, income from economic activities, net. Its calculations of economic activity produced goods and services creating atradedeficit 3.0 % includes adding together consumption. 5 % net exports, which are imports minus exports is good at producing ( goods and services by. Left hand side if prices were constant together private consumption or consumer spending, and negative %! Analytics at ValueBridge Advisors and a guest professor at the City University of New York final expenses total. An economys overall production matter who owns the factory you would create the logic to take an and. The measure of a countrys borders no matter who owns the factory in the companys interests! Gdp components ). goods, such as stocks and bonds, to the total spending in a salon! Salt 2. bread 3. wheat 4. steel 5. house 6. car 7. wood 8. tires.! Its calculations of economic activity and its contribution to national income and supports both and. Has his beard trimmed in a hair salon in New which of the following is included in gdp quizlet is in the textbook to solve exercise. % of GDP and net exports, which are imports minus exports private.
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which of the following is included in gdp quizlet