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Sally Has Recently Graduated from College and Has Bought a House

Question 2

Multiple Choice

Sally has recently graduated from college and has bought a house that was built 50 years ago for $100,000.She used a real estate agent to help her find and purchase the house,and the real estate agent received 6 percent of the value of the sale,or $6,000,to be paid by the seller of the house.The value of GDP in this case would


A) increase by $100,000.
B) increase by $94,000.
C) increase by $106,000.
D) increase by $6,000.
E) not be affected because the house was not produced in the current time period.

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