The Patersons Bought a Home That Was Newly Constructed in 2007

Multiple Choice

The Patersons bought a home that was newly constructed in 2007 for $275,000. They sold the home in 2009 for $205,000. Which of the following statements is correct regarding the sale of the house?

A) The 2009 sale increased 2009 GDP by $205,000 and had no effect on 2007 GDP.
B) The 2009 sale reduced 2009 GDP by $70,000 and had no effect on 2007 GDP.
C) The 2009 sale increased 2009 GDP by $205,000; and caused 2007 GDP to be revised downward by $70,000.
D) The 2009 sale affected neither 2007 GDP nor 2009 GDP.