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GDP includes the estimation of the value of all the final goods and services produced in a country or the income earned by the sale of such goods and services.

When Kerry buys a new sweater, she is spending on the final good. This is the household consumption expenditure, and therefore, is included in GDP.

Non-production transactions like transfer payments, second-hand sales are not included in the GDP calculations as these monetary transactions do not result in final good generation.

Social Security Check received by Patricia is a public transfer payment that does not involve any addition to current production and thus, is excluded to avoid overstating the national income.

The $50 received by Roberto’s daughter is a private transfer payment that results in no change in the nation’s output, and therefore, is excluded from GDP calculations.

The selling of $1000 General electric Stock by Nayana is not included as it is a stock market transaction that adds nothing to current production and is just swapping of papers.

When Jasmine buys a new car, she is spending on the final good, and thus, the transaction is counted in GDP calculations.

Molly buying a used car is not included as the value of the car was already included in the year in which it was originally produced. There is no addition to the current output level, and hence, this is excluded from GDP calculations.