Question : Which of the following is included in the calculation of GDP?
Option 1: Payments for government transfer programs
Option 2: Consumer spending on durable goods
Option 3: Income earned by foreign nationals in the country
Option 4: Capital gains
Correct Answer: Consumer spending on durable goods
Solution : The correct answer is (b) Consumer spending on durable goods
Consumer spending on durable goods is included in the calculation of GDP. GDP measures the total value of goods and services produced within a country's borders during a specific period. Consumer spending is an important component of GDP, and it includes expenditures on durable goods, such as cars, appliances, furniture, and electronics. This spending contributes to economic activity and is accounted for in the calculation of GDP. Payments for government transfer programs, income earned by foreign nationals, and capital gains are not directly included in the calculation of GDP.
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