Suppose that in 2011 you paid $150,000 for a house that was built in 2005 and sold that year for $210,000.The amount this transaction would add to the GDP in 2011 is
A) $0.
B) $60,000.
C) $210,000.
D) -$60,000

Question

Quizplus · Accepted Answer

The sale of a used house does not add to GDP because GDP only includes the value of new goods and services produced within the year. The transaction of a house built in 2005 does not contribute to the GDP of 2011.

Suppose That in 2011 You Paid $150,000 for a House