Until Recently,George Lived in a Home That Was Newly Constructed

Multiple Choice

Until recently,George lived in a home that was newly constructed in 2005.In 2005,he paid $200,000 for the brand new house.He sold the house in 2006 for $225,0000.Which of the following statements is correct regarding the sale of the house?

A) The 2006 sale increased 2006 GDP by $225,000 and had no effect on 2005 GDP.
B) The 2006 sale increased 2006 GDP by $25,000 and had no effect on 2005 GDP.
C) The 2006 sale increased 2006 GDP by $225,000; furthermore, the 2006 sale caused 2005 GDP to be revised upward by $25,000.
D) The 2006 sale affected neither 2005 GDP nor 2006 GDP.