The gross domestic product (GDP) of the United States is defined as themarket value of allfinal goods and services produced within the United States 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 the United States in 2024.
Scenario
2024 GDP
Included
Excluded
The Federal Emergency Management Agency (FEMA) deposits funds into Mike’s checking account to help pay for his hurricane-related expenses.
Mikayla Brown buys a 1976 Ford Mustang in Idaho on March 15, 2024.
Splinter Crafters, a U.S. forestry company, produces wood ships at a plant in Tennessee on September 19, 2024. It sells the wood chips to Treetop Paperworks for use in the production of paper products that will be made in the United States in 2024. (Note: Focus exclusively on whether production of the wood chips increases GDP directly, and ignore the effect of production of the paper products on GDP.)
Jack Motors, a Scottish automobile company, produces a connected SUV at a plant in Pennsylvania on December 12, 2024. Jill buys the connected SUV on December 24.
Liberty Wheels, a U.S. automobile company, produces a sedan at a manufacturing facility in Bakersfield on January 8, 2024. It sells the car at a dealership in Miami on February 14, 2024.
Sakura Technologies, a U.S. gaming company, produces a gaming controller at a plant in Japan on March 15, 2024. Sakura Technologies imports the gaming controller into the United States on May 3, 2024.