Is expenditure on the purchase of an old house included/excluded in national income?
Is expenditure on the purchase of an old house included/excluded in national income?
Anurag Pathak Changed status to publish December 9, 2023
No,
The expenditure on the purchase of an old house will not be included in the national income because payment for purchase of second hand goods is due to transfer of an already existing object.
Explanation:-
The purchase of an old house is the second purchase.
The value of the house is already included in the national income at the time of the first purchase.
If the purchase value of the old house is included in the national income it will lead to double counting.
Anurag Pathak Changed status to publish December 9, 2023
