A family sells the house they have lived in for two years to a friend.They received $150,000 and paid $120,000 two years ago.This transaction
A)Increases GDP by $150,000.
B)Increases GDP by $30,000.
C)Has no effect on GDP because the house was not made this year.
D)Has no effect on GDP because the house is an intermediate good.

Question

Quizplus · Accepted Answer

Sales of used goods, including houses that were not built in the current year, do not affect the current year's GDP. GDP measures the value of new goods and services produced within a country in a specific time period.

A Family Sells the House They Have Lived in for Two