Question

Grapes are a counted as an intermediate good only if they are used to produce another good such as wine. b. counted as an intermediate good, whether they are used to produce another good or consumed. C. always counted as an intermediate good. d. counted as an intermediate good only if they are consumed 2. Until recently, George lived in a home that was newly constructed in new house. He sold the house in 2006 for $225,0000. Which of the followi 2005. In 2005, he paid $200,000 for the brand ing statements is correct regarding the sale of the house? he 200s sale increased 2006 GDP by $225,000. furthermore, the 2006 sale caused 200S GDP to be revised upward by $25,000. b. The 2006 sale increased 2006 GDP by $25,000 and had no effect on 2005 GDP c. The 2006 sale increased 2006 GDP by $225,000 and had no effect on 2005 GDP d. The 2006 sale affected neither 2005 GDP nor 2006 GDP For the purpose of calculating GDP using expenditure approach, the component of GDP called consumption consist o

Answer 1

Answer:

A - counted as an intermediate good only if they are used to produce another good such as wine.

Explanation:

Answer 2

Answer:

• a)Counted as intermediate good only if they are used to produce another good such as wine

• The 2006 sale affected neither 2005 GDP nor 2006 GDP

• household spending on durable and non durable goods as well as household spending on services

Explanation:

Part A

Counted as intermediate good only if they are used to produce another good such as wine

This is because an intermediate good refers to a good used to produce a final good

Part B)

The 2006 sale affected neither 2005 GDP nor 2006 GDP

This is because a house built last year will not be counted in the current year's GDP

Part C

household spending on durable and non durable goods as well as household spending on services

This is because consumption consists of consumer durable goods, consumer nondurable goods, and services