Question

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.

Answer 1

The 2015 sale affected neither 2007 GDP nor 2015 GDP

Step-by-step explanation:

Answer 2

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

Step-by-step 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.