Which of the following transactions would be included in a country’s GDP?

1. A person buys a used car from a friend.
2. A manager buys coffee beans to make coffee to sell at her coffee shop.
3. An investor buys stock in a foreign company.
4. A person buys a house that was first sold 10 years ago.
5. An automobile company exports cars to a foreign country.

The following table provides information on a country’s GDP and price deflator between 2009 and 2015. Answer the following questions based on this information.

1. In which year did this country’s economy experience a recession? What was the growth rate in real GDP equal to in that year?
2. In which year was the growth rate in nominal GDP the highest?
3. In which year was the growth rate in the average price level the lowest?

Which of the following statements is a criticism of GDP as a measure of a country’s standard of living?

1. GDP cannot factor in changes in prices in its measurement of total production.
2. GDP cannot measure the actual change in production.
3. GDP does not factor in the production of intermediate goods.
4. GDP may increase as a result of bad things like crime or war.
5. GDP does not factor in the value of financial assets.