Which of the following transactions would not be counted in GDP? Explain your answers.
a. General Motors issues new shares of stock to finance the construction of a plant.
b. General Motors builds a new plant.
c. Company A successfully launches a hostile takeover of company B, in which company A purchases all the assets of company B.
d. Your grandmother wins $10 million in the lottery.
e. You buy a new copy of this textbook.
f. You buy a used copy of this textbook.
g. The government pays out Social Security benefits.
h. A public utility installs new antipollution equipment in its smokestacks.
i. Luigi’s Pizza buys 30 pounds of mozzarella cheese, holds it in inventory for 1 month, and then uses it to make pizza (which it sells).
j. You spend the weekend cleaning your apartment.
k. A drug dealer sells $500 worth of illegal drugs.