Which transaction is excluded from the calculation of a country's current GDP?
Correct answer: C. The sale of a previously owned house
- A. The sale of a newly produced machine
- B. The construction of a new residential house
- C. The sale of a previously owned house
- D. The production of newly made clothing
Explanation
GDP measures the value of current production, so the original sale of a previously owned house is not counted again. The fees paid to an estate agent for arranging that sale may be included as current services.
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