Trying to understand what counts as GDP and how it is measured. The simplest example I can think of is to imagine a fictional three person country. Person A makes and sells a widget for $10 to person B. Clearly the gross output of this countries’ economy at this time is $10. But now if Person B sells the same widget to Person C will we consider the gross output to be $12 or $22? And why? Thanks.
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Generally, GDP *does not* include resale of purchase goods.
That is, if you buy something and sell it second hand, that doesn’t count.
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