Question 9 1 pts A house produced in 2011 but sold in 2016 w

Question 9 1 pts A house produced in 2011 but sold in 2016 would count as what in 2016? O Be included in Inventory,because residential housing is included in Investment not Consumption O It would be included in Consumption Not included in 2016 O Need more info

Solution

a) The house will be included in inventory in the year when the house was manufactured and will not form a part of the 2016 GDP accounting. The answer is \"C\", not included in 2016.   

b) \"A\", Fluctuations are irregular and unpredictable. The answer is \"A\".

c) \"A\", Real GDP, the economic growth can be measured using Real GDP.

d) The longterm growth line is a flat smooth line. It doesn\'t show fluctuations the way short-term growth does. The answer is \"A\".

e) \"True\"

In the period of high economic growth, the government will intervene to prevent the economy from overheating i.e. inflation.