Over the last few decades, Americans have chosen to cook less at home and eat more at restaurants. This change in behavior, by itself, has
A) reduced measured GDP.
B) not affected measured GDP.
C) increased measured GDP only to the extent that the value of the restaurant meals exceeded the value of meals previously cooked at home.
D) increased measured GDP by the full value of the restaurant meals.

Question

Quizplus · Accepted Answer

Eating at restaurants is a consumption expenditure, which is a component of GDP. Therefore, the increase in Americans eating at restaurants has increased measured GDP by the full value of the restaurant meals.

Over the Last Few Decades, Americans Have Chosen to Cook