Christopher buys a new house in 2004 for $80,000. He puts up a "For Sale" sign in 2005 and re-sells the same house for $90,000.   A. The 2004 sale will increase GDP by $80,000, and the 2005 sale will increase GDP by $90,000.   B. The 2004 sale will increase GDP by $80,000, but the 2005 sale will not increase GDP.   C. The 2004 sale will increase GDP by $80,000, and the 2005 sale will increase GDP by $10,000.   D. The 2004 sale will increase GDP by $80,000, and when the house is sold

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter19: The Macroeconomic Perspective
Section: Chapter Questions
Problem 1SCQ: Country A has export sales of 20 billion, government purchases of 1,000 billion, business investment...
icon
Related questions
Question

Christopher buys a new house in 2004 for $80,000. He puts up a "For Sale" sign in 2005 and re-sells the same house for $90,000.

 

A. The 2004 sale will increase GDP by $80,000, and the 2005 sale will increase GDP by $90,000.

 

B. The 2004 sale will increase GDP by $80,000, but the 2005 sale will not increase GDP.

 

C. The 2004 sale will increase GDP by $80,000, and the 2005 sale will increase GDP by $10,000.

 

D. The 2004 sale will increase GDP by $80,000, and when the house is sold again in 2005, 2004 GDP will be adjusted to reflect the increased value of the house.

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Inflation and Unemployment
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Brief Principles of Macroeconomics (MindTap Cours…
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
MACROECONOMICS
MACROECONOMICS
Economics
ISBN:
9781337794985
Author:
Baumol
Publisher:
CENGAGE L
Exploring Economics
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Economics (MindTap Course List)
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning