social-distancing rules that brought the real estate market to a standstill. For instance, in Toronto, sale of existing (old) and newly built homes were down by approximately 40% in April 2020. Discuss how we account for this drop in sales in GDP calculation. (Assume that services from real estate agents are used for all home sales/purchases.)
social-distancing rules that brought the real estate market to a standstill. For instance, in Toronto, sale of existing (old) and newly built homes were down by approximately 40% in April 2020. Discuss how we account for this drop in sales in GDP calculation. (Assume that services from real estate agents are used for all home sales/purchases.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Because of the COVID-19 pandemic, several governments are enforcing
social-distancing rules that brought the real estate market to a standstill. For instance,
in Toronto, sale of existing (old) and newly built homes were down by approximately
40% in April 2020. Discuss how we account for this drop in sales in GDP calculation.
(Assume that services from real estate agents are used for all home sales/purchases.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Feb81ebdf-f65b-407c-a8ba-acdda30231ba%2F22548453-55e3-4c6f-82b6-8f3d7e76c377%2Fwbmehc8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Because of the COVID-19 pandemic, several governments are enforcing
social-distancing rules that brought the real estate market to a standstill. For instance,
in Toronto, sale of existing (old) and newly built homes were down by approximately
40% in April 2020. Discuss how we account for this drop in sales in GDP calculation.
(Assume that services from real estate agents are used for all home sales/purchases.)
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