Consider Two Items That Might Be Included in GDP: (1)the

question 47

Multiple Choice

Consider two items that might be included in GDP: (1) the estimated rental value of owner-occupied housing and (2) purchases of newly-constructed homes.How are these two items accounted for when GDP is calculated?

• A)Both item (1)and item (2)are included in the consumption component of GDP.
• B)Item (1)is included in the consumption component of GDP,while item (2)is included in the investment component of GDP.
• C)Item (1)is included in the investment component of GDP,while item (2)is included in the consumption component of GDP.
• D)Only item (2)is included in GDP,and it is included in the investment component.

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Definitions:

Congress

The national legislative body of the United States, consisting of the Senate and the House of Representatives, responsible for making federal laws.

Artificial Persons

Legal entities that are not natural persons (human beings) but are treated by law as if they were individuals, such as corporations or government bodies.

Fourteenth Amendment

An amendment to the US Constitution granting citizenship to all persons born or naturalized in the United States and ensuring equal protection under the laws.

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The initial ten adjustments to the U.S. Constitution, ensuring fundamental liberties and rights for the people of America.