Suppose the value of your home increases from $100,000 to $125,000. If you continue to live in your home, the increase in its value:

A) adds nothing to GDP.

B) increases GDP by $25,000.

C) increases GDP by $100,000.

D) increases GDP by $125,000.

The GDP of an economy measures the value of final goods and services produced in an economy in a year. This increase in the value of a house will not affect GDP as no final good or service is being produced.

The value of second-hand goods is not included in GDP.

Suppose the value of your home increases from $100,000 to $125,000. If you continue to live in your home, the increase in its value: A) adds nothing to GDP. B) increases GDP by $25,000. C) increases GDP by $100,000. D) increases GDP by $125,000.

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Suppose the value of your home increases from $100,000 to $125,000. If you continue to live in your home, the increase in its value:

A) adds nothing to GDP.

B) increases GDP by $25,000.

C) increases GDP by $100,000.

D) increases GDP by $125,000.