Question

The Patersons bought a home that was newly constructed in 2007 for $275,000. They sold the home in 2015 for $255,000. Which of the following statements is correct regarding the sale of the house?

Selected Answer: Correctc.
The 2015 sale affected neither 2007 GDP nor 2015 GDP.

Answers: a.
The 2015 sale increased 2015 GDP by $255,000; and caused 2007 GDP to be revised downward by $20,000.

b.
The 2015 sale increased 2015 GDP by $255,000 and had no effect on 2007 GDP.

Correctc.
The 2015 sale affected neither 2007 GDP nor 2015 GDP.

d.
The 2015 sale reduced 2015 GDP by $20,000 and had no effect on 2007 GDP.

If you could please explain why C is the correct answer. That is what I need thank you!

Answer 1

The 2015 sale affected neither 2007 GDP nor 2015 GDP.

Answer: Option C.

Explanation:

GDP is the gross domestic product. It is the value of the goods and services that the country produces in a particular year. The gross domestic product tells the growth rate of the country.

Higher the gross domestic product of the country, more would be the growth rate of the country for that particular year. It only takes into consideration the goods and the services produced in a particular year. And GDP of one year can be compared with the GDP of the previous year to determine the growth rate of the country.

Answer 2

Answer:

c

Explanation:

Correctc.

The 2015 sale affected neither 2007 GDP nor 2015 GDP.

and u also put it as correct