GDP does not include which of the following activities?

A. Households spending to enhance the security of their neighborhood.

B. couples remodeling their own homes (with their own money)

C. businesses installing anti-pollution equipment

D. families eating out in restaurant

D. families eating out in restaurant

Explanation:

Gross domestic product (GDP) is a measure of a country's level of output or production. Economists use the GDP index to determine if a company is making progress in terms of economic growth.

GDP is the aggregate monetary value of all products and services produced inside the borders of a nation in a financial period. In calculating GDP, economists can either use the income approach or the expenditure approach, the result will be the same.

One shorting of GDP is that it does not consider an increase in leisure activities. When a household is dining in a restaurant, that's a leisure activity. In the calculation of GDP, it will not count. The other threes are services that involve purchases of items; they will be included in the GDP.