During the current year,Jessica sold her house,built two years ago,to Kim for $175,000.Kim then sold the house to Dave for $185,000.How much does GDP increase due to these transactions?

Question

Quizplus · Accepted Answer

GDP only includes the value of new goods and services produced within a country during a specific period. Since the house was built two years ago, its sale does not contribute to the current year's GDP. However, the increase in GDP would be the value added by the transactions, which is the difference between the sale prices: $185,000 - $175,000 = $10,000.

During the Current Year,Jessica Sold Her House,built Two Years Ago,to