Question

Tom lives in an apartment where he pays $8,000 a year in rent. Sarah lives in a house that could be rented for $10,000 a year. How much do these housing services contribute to GDP?

Answer 1

Answer:

these housing services contribute to GDP =   $18000

Explanation:

given data

Tom pay rent = $8000

Sarah house  rented = $10,000

solution

housing services contribute to GDP is express as

housing services contribute to GDP = Tom pay rent + Sarah house rented ............1

As GDP include both rent and estimate rent owner occupy home

put here value in equation 1 we get

housing services contribute to GDP =  $8000 + $10000

housing services contribute to GDP =   $18000