If in the past, you always painted your own house but now you hire a painting contractor to do the work, what effect does this have 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 instead of doing it oneself increases GDP as it represents an increase in economic activity and the value of goods and services produced. The money paid to the painting contractor for their services is included in the calculation of GDP.

If in the Past, You Always Painted Your Own House