A real estate salesperson sells a house in 2015 that was built in 2005.How does this transaction get counted in the GDP statistics?
A)The price of the house and the real estate salesperson's commission are both included in 2015's GDP.
B)Neither the price of the house nor the commission is included in 2015's GDP.
C)The real estate salesperson's commission but not the price of the house is included in 2015's GDP.
D)The price of the house would be included in both 2005's GDP and the GDP for 2015.

Question

Quizplus · Accepted Answer

GDP only includes the value of new goods and services produced within a country in a given year. The house, built in 2005, was already included in GDP in the year it was constructed. The real estate salesperson's commission in 2015 is a service provided in that year, so it is included in 2015's GDP.

A Real Estate Salesperson Sells a House in 2015 That