Over time Americans have chosen to cook less at home and din

Over time Americans have chosen to cook less at home and dine out more. This change in behavior:

A. increases GDP

B. reduces GDP

C. does not affect GDP

D. None of the above

Solution

This change in behaviour will increase GDP as because unpaid labor (mom’s cooking) does not count in GDP.

Over time Americans have chosen to cook less at home and dine out more. This change in behavior: A. increases GDP B. reduces GDP C. does not affect GDP D. None

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