Economics GDP?

Question

Would the cashing of a us government bond be included in GDP? WHY OR WHY NOT?

Answer 1

Nothing has been produced. One financial claim (a bond) has been exchanged for another financial claim (a bank deposit,. after you deposit the check)

Answer 2

U aRE RIGHT THAT CASHING OF A GOVT. BOND WILL NOT BE INCLUDED IN gdp BECAUSE THIS ACTIVITY MERELY RESULTS IN A REDISTRIBUTION OF FINANCIAL ASSETS BETWEEN THE BUYER OF THE BOND GIVNG CASH AND THE SELLER OF THE BONG GIVING UP THE BOND IN EXCHANGE. tHIS ACTIVITY DOES NOT ADD VALUE OR nor generates and value added. For anything to be included in GDP some value added has to be generated and the income distributed in the form of wages, rent, interest or profits (not capital gains).

Answer 3

no, because GDP is the "final value of all goods and services produced in an economy in a year". government bonds are like loans-- they are securities. nothing is being produced.