What issue is there regarding housing and the measurement of GDP?
A) residential investment is measured using current house prices, not construction prices.
B) houses are a capital and a consumption good.
C) one does not know whether a house will be owned or rented when it is built.
D) mobile homes are not counted.

Question

Quizplus · Accepted Answer

Residential investment is measured using current house prices, not construction prices. This means that changes in housing prices can greatly impact the measurement of GDP, as an increase in prices does not necessarily indicate an increase in new construction or investment in the housing market.

What Issue Is There Regarding Housing and the Measurement of GDP