Luigis pizza buys 30 pounds of mozzarella cheese holds it


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.

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Econometrics: Luigis pizza buys 30 pounds of mozzarella cheese holds it
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