Suppose you buy your uncle\'s childhood house for $300,000 and rent it out to a

Question

Suppose you buy your uncle's childhood house for $300,000 and rent it out to a friend for a yearly rent of $15,000. What should be added to GDP for the year? $300,000 should be added to investment, $15,000 should be added to consumption $315,000 should be added to consumption $300,000 should be added as housing services ($15,000 is not added because this is included in the $300,000) None of the above QUESTION 11 Structural unemployment is unemployment in the sector producing equipment and structures the long run average rate of unemployment around which the economy fluctuates unemployment that occurs because it takes time to match employers to workers unemployment that occurs due to wage rigidity and job rationing

Explanation / Answer

Q 10. Option 4. As the house is already constructed and cannot be included in investment. Rent needs to be included consumption

Q. 11. Option 4. It happens due to changes in technological developments.

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