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Tom and Lilly rented a house for $12,000 last year. At the start of the year they bought the house they had been renting directly from the owner for $250,000. They believe they could rent it for $12,000
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Tom and Lilly rented a house for $12,000 last year. At the start of the year they bought the house they had been renting directly from the owner for $250,000. They believe they could rent it for $12,000 this year, but stay in the house. How much does Tom and Lilly’s decision to buy the house change GDP?

User Alexandrius
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Answer:

It does not change GDP

Step-by-step explanation:

The buying of new house does not contribute to GDP of the country and hence Tom and lilly's decision to buy the house does not change GDP.

GDP is the monetary value of goods and services produced in a country during a financial year.

User Johnrad
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