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Readme [11.4K]
3 years ago
5

Where do​ new-home sales appear in the circular flow of expenditure and​ income? Explain how a surge in new home sales affects r

eal GDP. New home sales appear in the​ ______ category of the U.S. National Income and Product Accounts. New home sales​ _______.
Social Studies
1 answer:
Anna007 [38]3 years ago
6 0

Answer: Investment and Increases.

Explanation:  Economic expansion basically depends on four factors: consumption, investment, public spending and trade balance.

GDP (Gross Domestic Product) is nothing more than the aggregate of all final goods and services produced in a country over a period of time.

The first factor that directly influences the GDP variation concerns private consumption, that is, household expenditures for the purchase of goods or services.

Another factor that has a strong influence on GDP variation is private investments, those made by companies.

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