The Patersons bought a home that was newly constructed in 2007 for $275,000. They sold the home in 2015 for $255,000. Which of the following statements is correct regarding the sale of the house? a. The 2015 sale increased 2015 GDP by $255,000; and caused 2007 GDP to be revised downward by $20,000. b. The 2015 sale increased 2015 GDP by $255,000 and had no effect on 2007 GDP. c. The 2015 sale affected neither 2007 GDP nor 2015 GDP. d. The 2015 sale reduced 2015 GDP by $20,000 and had no effect on 2007 GDP.

Question

Business

Jaelynn Mcguire

26 September, 01:02

The Patersons bought a home that was newly constructed in 2007 for $275,000. They sold the home in 2015 for $255,000. Which of the following statements is correct regarding the sale of the house? a. The 2015 sale increased 2015 GDP by $255,000; and caused 2007 GDP to be revised downward by $20,000. b. The 2015 sale increased 2015 GDP by $255,000 and had no effect on 2007 GDP. c. The 2015 sale affected neither 2007 GDP nor 2015 GDP. d. The 2015 sale reduced 2015 GDP by $20,000 and had no effect on 2007 GDP.

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Answers (2)

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Giuliana Berry · Answer 1

The 2015 sale affected neither 2007 GDP nor 2015 GDP

Jordyn Atkinson · Answer 2

"The 2015 sale affected neither 2007 GDP nor 2015 GDP " this statement is correct regarding the sale of the house.

Explanation:

The residents ' wages would boost the housing demand, but also will raise people's infrastructure demand. There was a misunderstanding. To order to stimulate investment demands, GDP growth impacts housing rates and credit, and thus affects domestic prices.

Inside GDP, buying a new house represents an investment; the house's ownership is viewed as a productive activity; and the house's economy is ostensibly carried on by a contract from the house to the resident.

As early as 2018, housing spending amounted to around $2.6 trillion and constituted 11.6% of GDP. In 2018, gross household spending accounted for nearly 15% of GDP.