Which of the following transactions are included in gross domestic product, and by how much does each raise GDP?
a. Smith pays a carpenter $50,000 to build a garage.
b. Smith purchases $10,000 worth of materials and builds himself a garage, which is worth $50,000.
c. Smith goes to the woods, cuts down a tree, and uses the wood to build himself a garage that is worth $50,000.
d. The Jones family sells its old house to the Reynolds family for $400,000. The Joneses then buy a newly constructed house from a builder for $500,000.
e. You purchase a used computer from a friend for $200.
f. Your university purchases a new mainframe computer from IBM, paying $25,000.
g. You win $100 in an Atlantic City casino.
h. You make $100 in the stock market.
i. You sell a used economics textbook to your college bookstore for $60.
j. You buy a new economics textbook from your college bookstore for $100.