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New Home Construction Is Included in the Consumption Component of GDP

question 120

True/False

New home construction is included in the consumption component of GDP.


Definitions:

Short Run

A period in economics where at least one input is fixed while others are variable, affecting levels of production.

Output

The total quantity of goods or services produced by a company, industry, or economy within a certain period.

Unemployment

The situation in which individuals who are able and willing to work are not finding employment.

Aggregate Demand

It refers to the total demand for all goods and services within a particular economy at current price levels.

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