If in the past you have always painted your own house but now you hire a painting contractor to do the work,what is the effect on GDP?
A) GDP is unaffected by this change.
B) GDP falls as a result of this change.
C) GDP at first rises but then falls.
D) GDP rises as a result of this change.

Question

Quizplus · Accepted Answer

Hiring a painting contractor to do the work increases economic activity and spending, leading to a rise in GDP. This is because the cost of hiring the contractor will now be included in the calculation of GDP as a part of private investment.

If in the Past You Have Always Painted Your Own