Dissatisfaction with public school education has led many parents to try home schooling for their children.If parents cut back on their jobs outside the home in order to spend time teaching their children at home, how will this affect GDP?
A)GDP will increase.
B)Real GDP will increase and nominal GDP will decrease.
C)Both real and nominal GDP will increase.
D)GDP will decrease.

Question

Quizplus · Accepted Answer

If parents cut back on their jobs to homeschool their children, this will result in a decrease in labor force participation and a decrease in overall productivity. As a result, GDP will decrease.

Dissatisfaction with Public School Education Has Led Many Parents to Try