Instead of taking the dirty laundry with you when you go back to visit your parents, you use a Laundromat. Your use of the Laundromat means that
A)what you paid for use of the Laundromat will be included in GDP.
B)real GDP does not change because the clothes are still being laundered but nominal GDP rises since you are now paying for the service.
C)GDP will remain the same.
D)your parents' contribution to GDP will increase.
E)GDP will decrease and the country's standard of living will fall.

Question

Quizplus · Accepted Answer

When you pay for the service at a Laundromat, it is a market transaction that is recorded and included in the calculation of GDP.

Instead of Taking the Dirty Laundry with You When You