M 4. Suppose an apartment complex converts to a condominium, so that the former renters are now owners of their housing units. Suppose further that a current estimate of the value of the condominium owners' housing services is the same as the rent they previously paid. What happens to GDP as a result of this conversion? a GDP necessarily increases. b. GDP necessarily decreases. GDP is unaffected because neither the rent nor the estimate of the value of housing services is included in GDP d. GDP is unaffected because previously the rent payments were included in GDP and now the rent payments are replaced in GDP by the estimate of the value of housing services, C Fre! a. Prer 5. Which of the following is included in U.S. GDP? the value of production by an American working in Morocco b. the value of production by a Moroccan working in the U.S. c. Both (a) and (b) are correct. d. Neither (a) nor (b) is correct. 6. Gross domestic product adds together many different kinds of goods and services into a single measure of th value of economic activity. To do this, GDP makes use of a market prices 6. prices that government economists believe reflect the true value of goods and services to society. the assumption that quantities of goods and services produced are unchanged from year to year the assumption that prices of goods and services are unchanged from year to year. c. d. a. 7 Which of the following transactions adds to U.S. GDP for 2006! In 2006, Ashley sells a car that she bought in 2002 to William for $5,000. b. An American management consultant works in Mexico during the summer of 2006 and earns the equivalent of $30,000 during that time. When John and Jennifer were both single, they lived in separate apartments and each paid $750 in c