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Readme [11.4K]
3 years ago
12

Joe sells the house he has lived in for 10 years to the Smith family for $300,000. He receives $50,000 more than his original pu

rchase price 10 years ago. Joe pays his real estate agent a 5 percent sales commission. This transaction will increase gross domestic product (GDP) by
Business
1 answer:
jasenka [17]3 years ago
5 0

Answer:

$15,000

Explanation:

Joe has sold the house he has been living in for 10 years to the Smiths family

He sold the house at $300,000

Joe receives $50,000 more than the original price bargained 10 years ago

He pays the real estate agent a commission of 5%

= 5/100

= 0.05

Therefore the increase in gross domestic product can be calculated as follows

= $300,000×0.05

= $15,000

Hence, the transaction will increase the gross domestic product by $15,000

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