George Lived in a Home That Was Newly Constructed in 2005

question 250

Multiple Choice

George lived in a home that was newly constructed in 2005 for which he paid $200,000. In 2008 he sold the house for $225,000. Which of the following statements is correct regarding the sale of the house?

• A)The 2008 sale increased 2008 GDP by $225,000 and had no effect on 2005 GDP.
• B)The 2008 sale increased 2008 GDP by $25,000 and had no effect on 2005 GDP.
• C)The 2008 sale increased 2008 GDP by $225,000; furthermore, the 2008 sale caused 2005 GDP to be revised upward by $25,000.
• D)The 2008 sale affected neither 2008 GDP nor 2005 GDP.

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Definitions:

Sodium

A chemical element (symbol Na) that is essential for human health, playing a crucial role in maintaining fluid balance, nerve function, and muscle contraction.

Sunscreen

A topical product applied to the skin to protect it from harmful UV radiation, reducing the risk of sunburn and skin cancer.

Substance Addiction

A chronic disease characterized by the compulsive use of substances despite harmful consequences.