By how much does GDP change between 2014 and 2015 in the following scenario? In 2014, a rich woman has a chef and pays him $50,000 to cook for her. In 2015, 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

GDP falls by $50,000 because when the chef is paid for cooking, his services contribute to GDP. After they marry and he cooks without payment, these services no longer contribute to GDP, reflecting a decrease.

By How Much Does GDP Change Between 2014 and 2015