Jennifer lives in a home that was newly constructed in 2011 for which she paid $240,000 . In 2014 she sold the house for $260,000 . Which of the following statements is correct regarding the sale of the house?
a. The 2014 sale increased 2014 GDP by $260,000 and had no effect on 2011 GDP.
b. The 2014 sale increased 2014 GDP by $20,000 and had no effect on 2011 GDP.
c. The 2014 sale increased 2014 GDP by $260,000; furthermore, the 2014 sale caused 2011 GDP to be revised upward by $20,000.
d. The 2014 sale affected neither 2014 GDP nor 2011 GDP.
d
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Which of the following have a positive relationship with household saving?
I. the real interest rate II. disposable income III. expected future income A) I and II B) II only C) II and III D) I, II and III
With the increased usage of cell phone services, what has happened to the price elasticity of demand for land-line telephone services?
A) The absolute value of the price elasticity coefficient has probably gone down. B) It has become more price inelastic. C) It has become more income elastic. D) It has become more price elastic.