21) Suppose Bob works for Mary as a proofreader. Mary and Bob fall deeply in love,...
21) Suppose Bob works for Mary as a proofreader. Mary and Bob fall deeply in love, marry and have eight children. Bob stops working for Mary in order to care for the children. What will be the effect on GDP? a. GDP will not change. b. GDP will decrease. c. GDP will increase. d. GDP may increase or may decrease depending on inflation
Homework Answers
21. Option b is the answer.
- GDP will decrease.
- Gross domestic product is calculated by considering the private consumption, gross investment, government investment, government spending and the imports and exports of a country. Here, Bob stopped working and the income is also stopped. It will definitely have impacts on the above mentioned terms. Thus the gdp is decreased.
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21) Suppose Bob works for Mary as a proofreader. Mary and Bob
fall deeply in love,...
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