assume that tom and mary pay their neighbor sam to baby-sit their 3 year old. tom and mary stop hiring sam to baby-sit, and they start having their daughter erin baby-sit but do not pay her. what is the impact of this change on gdp?

Respuesta :

The impact of this change on GDP remains decreased as GDP defines as the monetary value of products and services and here no payment is made for babysitting. Thus option B is correct.

What is GDP?

The term "GDP" stands for "gross domestic product," which serves in determining the monetary values of products and services offered on the market. when clients acquire these things within a predetermined period of time.

In the given case, it is explained that no payment for babysitting is made. This is disappointing news for firms and employees since it means that the economy is slowing down. A recession which can result in pay freezes and job losses occurs when the GDP declines.

Therefore, option B is appropriate. 

Learn more about GDP, here:

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