Question

Suppose a house is built and sold in the year 2008. If the house is resold in the year​ 2019, is the value of the house included in Gross Domestic ProductLOADING... ​(GDP) for​ 2019? A. No. GDP for 2019 includes only production that occurs during 2019. B. Yes. The value of the house is included in Gross Private Domestic Investment for 2019. C. No. GDP for 2019 includes only the market value of final goods. A house resold in 2019 is an intermediate good. D. Yes. The value of the house is included in Personal Consumption Expenditures for 2019. Would the services of a real estate agent who helped sell​ (or helped​ buy) the house be included in GDP for​ 2019? A. No. The value of the house is not included in GDP for 2019.​ Therefore, real estate services are not included either. B. Yes. GDP for 2019 includes the market value of final goods and services. This includes real estate services. C. No. GDP for 2019 includes only the market value of final goods. Real estate services are not final goods. D. Yes. Real estate services are considered Gross Private Domestic Investment.

Answer 1

Suppose a house is built and sold in the year 2008. If the house is resold in the year​ 2019, is the value of the house included in Gross Domestic Product (GDP) for​ 2019?

• A. No. GDP for 2019 includes only production that occurs during 2019.

Would the services of a real estate agent who helped sell​ (or helped​ buy) the house be included in GDP for​ 2019?

• B. Yes. GDP for 2019 includes the market value of final goods and services. This includes real estate services.

Step-by-step explanation:

The gross domestic product of a country includes all the final and legal products and services produced within the country during a certain time period (usually a year).

Since the house was built in 2008, it was included in the 2008 GDP, not the 2019. But the services provided by the real estate agent did actually happen during 2019 and were both final and legal services, therefore, they must be included in the 2019 GDP.