00:01
When determining if certain items will count in a country's gdp, there are a few things you want to look out for.
00:08
So first of all, what is gdp? it is the monetary value of all finished goods and services that a country produces and its orders in a given period of time.
00:18
So that's a mouthful.
00:19
So let's unpack it a bit.
00:20
So first, a big one, finished goods and services.
00:23
So that means it's the final product that, say, you're buying or a company is buying to use at a workplace.
00:32
So, for example, if you buy, if i'm a car company and i buy a wheel produced from another manufacturing plant to put in my car, the wheel doesn't count in gdp only to finish car because you don't want to double count items, right? so the wheel will be included in the price of the finished car.
00:50
And then another thing to look out for is that monetary transfers don't add anything of value to the economy right now.
00:58
There's nothing physical goods or service -wise that we can account for, so those things also don't count in gdp.
01:07
So if we look at these and apply these ideas, the first one, buying a new sweater.
01:12
So it's a finished good on buying it from the store, and it's new, right? so it's a new thing that was just added to the value of my economy today.
01:20
So that does count in gdp.
01:22
I'll put a check more next to that.
01:24
Receiving a social security check.
01:26
So that sounds like a money transfer, right? it's just me getting money.
01:30
It's not producing anything in the economy right now...