Suppose an Apartment Complex Converts to a Condominium (I

question 164

Multiple Choice

Suppose an apartment complex converts to a condominium (i.e., the renters become owners of their apartments) . Suppose the value of the condominium owners' housing services is now the same as their former rent. What happens to GDP?

• A) GDP necessarily increases.
• B) GDP necessarily decreases.
• C) GDP is unaffected because neither the rent nor the estimate of the value of housing services is included in GDP.
• D) GDP is unaffected because previously rent was included in GDP, and now it is replaced by the estimate of the value of housing services.

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Definitions:

Concept

An abstract idea or a mental symbol, typically associated with a fundamental characteristic of something.

Terms

In logic, the concepts or entities used in an argument or statement.

Donkey

A domesticated hoofed mammal of the horse family with long ears and a braying call.

Ass

A term that, depending on context, can colloquially refer to a person's buttocks or disparagingly refer to a person considered foolish or stubborn.