Sean used to volunteer to shovel his elderly neighbour's walk,but now his neighbour pays a company to do it.How does this change affect GDP?

Question

Quizplus · Accepted Answer

The payment made to the company for shoveling the walk is considered a service and therefore adds to the GDP. Even though Sean used to do it for free, it was not counted in the GDP because it was not a part of any transaction. Therefore, the change from volunteer work to a paid service increases the GDP by the price of the service.

Sean Used to Volunteer to Shovel His Elderly Neighbour's Walk,but