When Andrea was a poor college student, she changed the oil in her car herself. Now that she has a job, she takes her car to her mechanic to have the oil changed. GDP is not affected by this change.

Question

Quizplus · Accepted Answer

The change in Andrea's behavior affects GDP because it involves the purchase of a service (oil change by mechanic) instead of a good (oil for self-service). The purchase of services is counted in GDP as part of personal consumption expenditures.

When Andrea Was a Poor College Student, She Changed the Oil