You sell your old bedroom set to your roommate for $1,800 and buy brand new custom built furniture for $16,000. How much is added to GDP?

Name: You sell your old bedroom set to your roommate for $1,800 and buy brand new custom built furniture for $16,000. How much is added to GDP?
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Question

Quizplus · Accepted Answer

The $16,000 spent on brand new custom built furniture is added to GDP as it represents a new production. The sale of the old bedroom set does not count towards GDP as it is a second-hand transaction.

You Sell Your Old Bedroom Set to Your Roommate for $1,800