Company a successfully launches a hostile takeover

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Which of the following transactions would not be counted in GDP? Explain your answers.

a. General Motors issues new shares of stock to finance the construction of a plant.

b. General Motors builds a new plant.

c. Company A successfully launches a hostile takeover of company B, in which company A purchases all the assets of company B.

d. Your grandmother wins $10 million in the lottery.

e. You buy a new copy of this textbook.

f. You buy a used copy of this textbook.

g. The government pays out Social Security benefits.

h. A public utility installs new antipollution equipment in its smokestacks.

i. Luigi’s Pizza buys 30 pounds of mozzarella cheese, holds it in inventory for 1 month, and then uses it to make pizza (which it sells).

j. You spend the weekend cleaning your apartment.

k. A drug dealer sells $500 worth of illegal drugs.

Reference no: EM13324060

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