Which of the following actions will decrease the gross domestic product (GDP)?
A)Tom's alarm clock breaks,so he buys a new one.
B)Tom buys a new alarm clock because he tends to sleep through the first alarm.
C)Tom's alarm clock breaks.He now oversleeps and has to buy a cup of coffee on the way to work instead of making it at home.
D)Tom gets fired for being late often after his alarm clock breaks.
E)Tom sells his broken alarm clock and uses the money to buy some French fries.

Question

Quizplus · Accepted Answer

When Tom gets fired, he will no longer be producing anything, leading to a decrease in the GDP. The other choices involve some level of consumption or production, which contributes to the GDP.

Which of the Following Actions Will Decrease the Gross Domestic