Question

In: Economics

23. Susan sells a house built several years ago. The house sells for $304,016, and she...

23. Susan sells a house built several years ago. The house sells for $304,016, and she pays 5% of the sale price to her real estate agent for the commission fee. How much does this transaction add to GDP?

Enter a number rounded to two decimal places.

24,

The salary John’s grandfather earned in 1962 is a

Group of answer choices

inflation adjusted value.

nominal value.

real value.

cost of living adjusted value.

Solutions

Expert Solution

23. Answer is 15201

Selling price = 304016 $

Commission = 5% of 304016 = 15,200.8

The house will not be part of GDP as it is not current investment but commission earned is income earned in current year for service rendered.

24.Answer is “Nominal Value”

The earnings reported are in Nominal value terms, as the salary is reported without adjusting for inflation.

Rahul Sunny answered 2 years ago
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