Sandra decides to hire her neighbour's son to water her lawn and feed her dog this year instead of doing those tasks herself as she did last year.Since the same work is done in either case, GDP is unaffected by the change.

Question

Quizplus · Accepted Answer

The change does impact GDP. When Sandra did the work herself, it was not included in GDP. However, when she hires her neighbour's son to do it, his wages will be included in GDP. This is an example of how the production of goods and services by paid workers contributes to GDP.

Sandra Decides to Hire Her Neighbour's Son to Water Her