Which of the following is likely to increase measured GDP in Canada?
A) Alberta implements a higher provincial income tax, prompting more Albertans to obtain jobs in the underground economy.
B) Nissan increases production in its Japanese factories to produce more cars for export to Canada.
C) Prostitution is legalized in all provinces.
D) A greater number of men in Manitoba decide to become "stay-at-home dads" to take care of their kids.

Question

Quizplus · Accepted Answer

Legalizing prostitution would bring it into the formal economy, thus increasing measured GDP as these activities would now be recorded in official economic statistics.

Which of the Following Is Likely to Increase Measured GDP