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Good day. And sorry if it's a stupid question.

I came across a question on another q&a site earlier today. It was about a hypothetical scenario. The question was if everyone in a nation becomes self-sufficient, would GDP increase. There were answers where the answerers opined that it might actually reduce the GDP. Others had the opposite opinion.

I studied a bit about it and thought any product is counted in GDP. Am I correct?

Would personal produce (consumed by own) be counted in GDP calculation?

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  • $\begingroup$ By personal produce did you mean, for example, the lettuce or tomato one grows in her own garden for personal consumption and not for sale? $\endgroup$
    – Herr K.
    Sep 18 '20 at 21:30
  • $\begingroup$ Thanks for the comment Herr K. Yes, I mean just that. Also service can be included. Say, washing my own car instead of hiring someone to do it. Do check a related question which is opposite to the scenario described here. $\endgroup$
    – Toni
    Sep 19 '20 at 3:17
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This is often called “home production.” By default, the answer is no, but different countries have different methodologies.

This US Bureau of Economic Analysis page has some information: BEA webpage.

They produce a “satellite account” that includes this information. (Not officially part of GDP, but official supplemental information.)

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  • $\begingroup$ Thank you Brian Romanchuk for your answer. It includes interesting information. I will go through it. $\endgroup$
    – Toni
    Sep 18 '20 at 18:12
  • $\begingroup$ I had totally missed the "final goods" part in GDP's definition. Looking it again, I got it. $\endgroup$
    – Toni
    Sep 18 '20 at 18:14

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