Which one of the following events will reduce GDP?
A) Mrs. Lee hires a housekeeper.
B) You buy the ingredients to bake a loaf of bread, but you burn the bread and throw it away.
C) You decide to work five more hours per week at your bookkeeper job, even though you need more time to study.
D) An automobile manufacturer lays off 200 workers as the result of a fire in the paint shop.

Question

Quizplus · Accepted Answer

The layoff of 200 workers in the automobile manufacturing company will reduce the level of output and hence reduce GDP.

Which One of the Following Events Will Reduce GDP