00:01
So here we're talking about gdp.
00:02
And let's remember that gdp is the market value, right, because we convert everything to dollars, sorry, the market value of your final goods, your final domestic production.
00:16
That's the shortest way that i can summarize the definition.
00:21
So let's go through each of these and see if they conform.
00:25
So the first one is imported one.
00:30
So this is actually the tricky one.
00:32
It is included but does not add and the reason here is that it's in c and m right so here you add 20 to c because you're consuming a 20 bottle of wine but you subtract off 20 in imports because it's an import it's not something you actually produced so it shows up in the calculation but is not part of gdp right it's so it's not gdp but it is in the calculation.
01:09
So there's a very subtle difference there, right? the question says whether it's included in the calculation.
01:14
So yes, it's included in the calculation, but it cancels out.
01:20
B or two, let's say state highway spending.
01:30
This one is the most straightforward one, right? this one is just yes and it's government spending, right? government spending is all stuff spent by the government, if the government is going to repave highways.
01:42
It doesn't matter where the highway is.
01:43
It's government spending...