Suppose that instead of Greg not mowing his lawn,he pays his son $10.00 cash.By how much would GDP change?
A) $0
B) $10
C) -$10
D) Not enough information provided

Question

Quizplus · Accepted Answer

GDP measures the value of all final goods and services produced in an economy in a given period of time. In this case, the son's mowing of the lawn is a service that is being produced. The fact that Greg is paying his son $10.00 cash does not change the value of the service that is being produced. Therefore, GDP would not change.

Suppose That Instead of Greg Not Mowing His Lawn,he Pays