Question

The government of Gwinnett County purchases a new bus that was produced in Germany. What components of GDP are impacted?

a. consumption and investment
b. investment and government purchases
c. government purchases and net exports
d. this purchase is not included in GDP because local government purchases are excluded from GDP

Answer 1

d. this purchase is not included in GDP because local government purchases are excluded from GDP

Step-by-step explanation:

GDP which is the gross domestic product of a country is a measure of the market value of the finished goods and services produced within a particular country at a specific period in time. For the new bus purchase from Germany, it is not included in GDP because local government purchases are never part of it.