Activities included (and not included) in the calculation of GDP
The gross domestic product (GDP) of Canada is defined as the market value of all final goods and services produced within Canada 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 Canada in 2022.
Scenario 2022 GDP Included Excluded
Chocolate Express, a Swiss chocolate company, produces a chocolate bar at a plant in Ottawa on December 9, 2022. An elementary school student buys the chocolate bar on December 24.
Rotato, a Canadian tire company, produces a set of tires at a plant in Oshawa on September 25, 2022. It sells the set of tires to Speedmaster for use in the production of a two-door coupe that will be made in Canada in 2022. (Note: Focus exclusively on whether production of the set of tires increases GDP directly, and ignore the effect of production of the two-door coupe on GDP.)
The Jones family buys an antique silver platter at an auction in Vancouver on March 27, 2022.
Awake Cafe, a Canadian coffee company, produces a latte at its location in Brampton on January 14, 2022. It sells the latte to a customer immediately.
Athleticus, a Canadian shoe company, produces a pair of sneakers at a plant in Vietnam on March 27, 2022. Athleticus imports the pair of sneakers into Canada on May 18, 2022.