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MArishka [77]
3 years ago
6

James owns two houses. He rents one house to the Johnson family for $10,000 per year. He lives in the other house. If he were to

rent the house in which he lives, he could earn $12,000 per year in rent. How much do the housing services provided by the two houses contribute to GDP?
Business
1 answer:
AVprozaik [17]3 years ago
3 0

Answer:

$22,000

Explanation:

Given that

1st house rented = 10,000

2nd house estimated rent = 12,000

Therefore,

The two houses would contribute

= 10,000 + 12000

= $22,000

Note: Rent is considered as consumption and as a result, rent is added into the GDP. Also, in GDP estimation, imputed rent which is the amount a house owner is willing to rent a house away for if he decides to is calculated as part of the GDP.

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