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Jennifer Lives in a Home That Was Newly Constructed in 2011

Question 58

Multiple Choice

Jennifer lives in a home that was newly constructed in 2011 for which she paid $240,000.In 2014 she sold the house for $260,000.Which of the following statements is correct regarding the sale of the house?


A) The 2014 sale increased 2014 GDP by $260,000 and had no effect on 2011 GDP.
B) The 2014 sale increased 2014 GDP by $20,000 and had no effect on 2011 GDP.
C) The 2014 sale increased 2014 GDP by $260,000;furthermore,the 2014 sale caused 2011 GDP to be revised upward by $20,000.
D) The 2014 sale affected neither 2014 GDP nor 2011 GDP.

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