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State whether the following actions will increase or decrease GDP:

a. An individual sells her house on her own. (Select one)

b. An individual sells his house through a broker. (Select one)

c. Government increases Social Security payments. (Select one)

d. Stock prices rise by 20 percent. (Select one)


Sagot :

Final answer:

Selling a house, utilizing a broker, increasing Social Security payments contribute to GDP, but the rise in stock prices does not.


Explanation:

a. An individual sells her house on her own: Increase in GDP because it counts as a final sale of a good. b. An individual sells his house through a broker: Also increases GDP due to the service provided by the broker. c. Government increases Social Security payments: This would increase GDP as it involves government spending. d. Stock prices rise by 20 percent: Increase in the value of assets doesn't directly impact GDP.


Learn more about Impact on GDP from different actions here:

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