Multiple Choice
Suppose that an apartment complex converts to a condominium where the renters are now owners of their former apartments. Suppose that an estimate of the value of the condominium owners' housing services is now the same as their former rent. What happens to GDP?
A) GDP necessarily increases.
B) GDP necessarily decreases.
C) GDP is unaffected because neither the rent nor the estimate of the value of housing services is included in GDP.
D) GDP is unaffected because previously rent was included in GDP, and now it is replaced by the estimate of the value of housing services.
Correct Answer:
Verified
Correct Answer:
Verified
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