A family sells the house they have lived in for two years to a friend. They received $300,000 and paid $100,000 three years ago. This transaction

A. increases GDP by $200,000.
B. has no effect on GDP because the house was not built this year.
C. increases GDP by $100,000.
D. has no effect on GDP because the buyer is the family's friend.


Answer: B

Economics

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