Question about GDP

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slickchris7777

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#1 slickchris7777
Member since 2005 • 1610 Posts
If you were to buy a house in 1970 for $50,000 and sell it back in 1990 for $100,000. How much of that would go into the 1990 GDP?
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limpbizkit818

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#2 limpbizkit818
Member since 2004 • 15044 Posts
The $50,000 you spent in 1970.
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darkodonnie

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#3 darkodonnie
Member since 2007 • 2384 Posts

that house would add $50,000 to the 1970 GDP, and nothing to the 1990 GDP

reselling an item does not go into GDP

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Jacobistheman

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#4 Jacobistheman
Member since 2007 • 3975 Posts
If you were to buy a house in 1970 for $50,000 and sell it back in 1990 for $100,000. How much of that would go into the 1990 GDP? slickchris7777
What are you asking? I will give it a try Well untill 1994 (when clinton's housing policy created a housing bubble) the prices of houses went up with inflation, and the GDP went up pretty much with inflation, so the housing price per GDP stayed about the same. So the house's value stayed the same.
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slickchris7777

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#5 slickchris7777
Member since 2005 • 1610 Posts
Thanks a lot guys.