By how much does GDP change between 2010 and 2011 in the following scenario? In 2010, a rich woman has a chef and pays him $50,000 to cook for her. In 2010, she marries the chef and he continues to cook.
A) GDP rises by $50,000.
B) GDP is unchanged.
C) GDP falls by $50,000.
D) GDP rises by $25,000.
E) Not enough information is given.

Question

Quizplus · Accepted Answer

When the chef is paid as an employee, his salary contributes to GDP. After marriage, if he is no longer paid, his services are not counted in GDP, resulting in a $50,000 decrease.

By How Much Does GDP Change Between 2010 and 2011