Multiple Choice
Upon getting a big promotion, Sally decides to buy a house in the neighborhood she grew up in as a child. In fact, the house she buys used to belong to a neighbor of hers, and so she's certain it's in good shape and well worth the $200,000 she pays for it. The only thing Sally needs to do is replace all the gutters for $1,000, which she happily does. How will GDP be affected by Sally's recent purchases?
A) Consumption will increase by $1,000, and investment will increase by $200,000.
B) Consumption will increase by $210,000.
C) Investment will increase by $201,000.
D) GDP will increase by $1000.
Correct Answer:

Verified
Correct Answer:
Verified
Q9: The government office that declares official periods
Q37: U.S. Gross Domestic Product includes goods produced
Q38: Of the world's countries, which of the
Q40: An example of a final good is:<br>A)
Q41: A depression is a:<br>A) severe and extended
Q43: Intermediate goods are not included in GDP
Q44: Consumption, as a component of GDP:<br>A) measures
Q45: Which approach to calculating GDP would be
Q46: When maximizing economic growth is a country's
Q47: The base year refers to the year