George Buys and Lives in a Newly Constructed Home He

Multiple Choice

George buys and lives in a newly constructed home he paid $200,000 for in 2015.He sells the house in 2016 for $225,000.How is GDP impacted?

A) The 2016 sale increases 2016 GDP by $225,000 and does nothing to 2015 GDP.
B) The 2016 sale increases 2016 GDP by $25,000 and does nothing to 2015 GDP.
C) The 2016 sale does not increase 2016 GDP and does nothing to 2015 GDP.
D) The 2016 sale increases 2016 GDP by $225,000,and 2015 GDP is revised upward by $25,000.