My textbook says this:

The quantity of goods and services includes only those goods and services that manufacturers produced during the past calendar year.

If this is the case, does it mean that a car produced this year and sold this year is NOT included in the GDP for this year, and that only a car produced last year and sold this year is included?


1 Answer 1


I don't know the context of quoted statement, which might have confused you, but for a given reference year (say 2018), GDP includes all goods and services produced that same year (in 2018). That's how GDP is calculated when using the production approach your are referring to.


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