Which One of the Following Are Including in This Year's Gdp

Which of the following are included in this year's GDP? Choose ONE case to answer. Explain your answer.

- Rent received on a two‑bedroom apartment.

Gross Domestic Product (GDP) is a yearly measurement taken of services and items produced in a country. This monetary amount helps determine the size of our economy. GDP contains not only products made but also services provided, including such things as housing services and the rent received on a two-bedroom apartment.

Gross domestic product involves a market system of supply and demand and in order to look at our economy it is necessary to consider all money spent on goods and services and all income earned. According to Taylor & Greenlaw (2014), there are several ways of calculating the gross domestic product, including the income approach. This method of determining GDP involves ten different factors, one of which is rents (“Measuring Domestic,” 2015). Rent is included in this year’s GDP because the owner of a house or rental unit is supplying a service by offering a place to live, in return they receive rent money as a method of income. Housing is a basic human need, therefore making it a large factor in the economy of a nation. According to Honea (2015), housing accounted for about 15% of the GDP development in the fourth quarter of 2014. This number looks at the cost of housing services, such as mortgage, rent, utilities, and the cost of home furnishings and goods. The other factor involved in this percentage is the residential investment of new home construction.

Living in a house or renting a house is considered a productive service in our economy but it is considered an imputation for the gross domestic product. If a person lives in their own home, but does not rent it out, it is still counted towards the GDP as if they are renting it to themselves. An imputation is an estimated value of what something would be worth if it were actually traded within the marketplace....