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George Buys and Lives in a Newly Constructed Home He

Question 52

Multiple Choice

George buys and lives in a newly constructed home he paid $200 000 for in 2012.He sells the house in 2013 for $225 000.How is GDP impacted?


A) The 2013 sale increases 2013 GDP by $225 000 and does nothing to 2012 GDP.
B) The 2013 sale increases 2013 GDP by $25 000 and does nothing to 2012 GDP.
C) The 2013 sale does not increase 2013 GDP and does nothing to 2012 GDP.
D) The 2013 sale increases 2013 GDP by $225 000, and 2012 GDP is revised upward by $25 000.

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