The gross domestic product (GDP) of the United States is defined as the all 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 2020. 2020 GDP Scenario Included Excluded Awake Cafe, a U.S. coffee company, produces a latte at its location in Minneapolis on January 6, 2020. It sells the latte to a customer immediately. You chop down a cherry tree on your property in California and make a dining room table in 202o. A similar table sells for $800 in a local furniture store. Sofaland, a Swedish furniture company, produces a table at a plant in Virginia on December 14, 2020. It sells the table to a college student on December 24. Treetopplers, a U.S. Iumber company, produces wood at a plant in Oregon on September 25, 2020. It sells the wood to Buildit and Partners, a developer, for use in the production of a new house that will be built in the United States in 2020. (Note: Focus exclusively on whether production of the wood increases GDP directly, and ignore the effect of production of the new house on GDP.) Calculo, a U.S. electronics company, produces a calculator at a plant in Indonesia on March 11, 2020. Calculo imports the calculator into the United States on May 29, 2020.
Please give a detailed solution with an explanation and answer all the questions provided in the image below.
For the 3 blank answers here are the options:
Blank Answer #1:
cost of producing or market value of or wholesale cost of
Blank Answer #2:
final goods and services produced or final goods and services consumed or final and intermediate goods and services produced
Blank Answer #3:
by U.S. citizens or by U.S.-owned companies or within the United States
The Gross Domestic Product is the summation of the money value of all the final goods and services produced in the political boundary of the economy in the financial year. The goods and services produced in the previous years are not included in the GDP calculation. The nominal GDP is the GDP calculated by multiplying the current year quantity with the current year price whereas the real GDP is calculated by multiplying the current year output with the base year price level. Thus, the real GDP is inflation-free GDP and used as a good measure to compare the economic growth of the economy. This means that the blanks can be completed as follows:
The gross domestic product (GDP) of the United States is defined as the market value of all final goods and services produced within the United States in a given period of time.
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