The service of mechanic in fixing the radiator of his car.ist excluded or included gross domestic product and how?
The service of a mechanic fixing the radiator of his car would be included in the calculation of gross domestic product (GDP) since it falls under the category of services. GDP is a measure of the total value of goods and services produced within a country's borders within a specific time period.
To calculate GDP, there are different approaches, such as the expenditure approach, income approach, and production approach. The expenditure approach measures GDP by adding up the total spending on goods and services in a given period. When the mechanic fixes his car's radiator, he would typically charge a fee or receive payment for his service. This payment contributes to the overall spending in the economy and is included in GDP.
Additionally, the income approach considers the income earned by individuals or businesses in the production of goods and services. The mechanic's earnings from fixing radiators would be counted as income and would be included in GDP. The production approach looks at the value-added at each stage of production within an economy, and the mechanic's service would be considered one of these stages.
In summary, when a mechanic fixes the radiator of his car and receives payment for the service, it is included in GDP. The payment he receives contributes to total spending in the economy, and his earnings are counted as income in the calculation of GDP.