As a measure of macroeconomic activity, which of the following is true about real GDP?

1.It counts the distribution of income across the population of the economy.

2.It does not count the value of home-produced goods that are not sold in the marketplace.

3.It counts newly produced intermediate goods and inventory and not the sale of final goods.

4.It excludes expenditures associated with crime, pollution and medical care since GDP focuses on growth and well-being.