1. Why are only final goods counted in measuring GDP for a particular year? Why is the value of used furniture that's bought and sold not counted?
2. What are the three main types of consumption expenditures? Why are purchases of new houses considered to be investment expenditures rather than consumption expenditures?
3. Why are changes in investors included as part of investment spending? Suppose inventories declined by $1 billion during 2012. How would this affect the size of gross private domestic investment and gross domestic product in 2012?