Ask Question
BusinessBusiness
2 April, 06:17

Suppose Gerald works for Lola as a production assistant. Gerald and Lola fall in love, get married and have children. Gerald stops working for Lola in order to care for the children. What will be the effect of this scenario on GDP?

+5
Answers (1)
  1. 2 April, 10:10
    0
    The GDP will decrease.

    Explanation:

    The GDP of an economy includes the value of final goods and services produced in the economy within a given period. It does not include the value of the underground economy, intermediate goods and home production of goods and services.

    When Gerald was working as production assistant the value of his production was included in the GDP. When he stops working to care for his children, he is not making any income. The value of taking care of children will not be included in the GDP as it does not involves any economic transaction. So this will cause the GDP to decrease.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Suppose Gerald works for Lola as a production assistant. Gerald and Lola fall in love, get married and have children. Gerald stops working ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
7. Allowance, a paycheck, gifts, and gains from an investment are examples of A. income B. expenses C. wealth D. philanthropy the answer is a
Answers (1)
In the long run, fiscal policy influences a. saving, investment, and growth; in the short run, fiscal policy primarily influences the aggregate demand for goods and services. b.
Answers (1)
Layla is applying for a position, in which she will coordinate the activities of the engineering and manufacturing departments to achieve a 5% reduction in defect rate.
Answers (1)
Restin Co. uses the gross method to record sales made on credit. On June 1, 2017, it made sales of $50,000 with terms 3/15, n/45. On June 12, 2017, Restin received full payment for the June 1 sale. Prepare the required journal entries for Restin Co.
Answers (1)
When you gave your friend a fifty-dollar bill for an iPod, you used money as: A. a standard B. store of value C. medium of exchange D. measure of value
Answers (1)
New Questions in Business
A small company has 5000 shares. Lauren owns 200 of these shares. The company decides to split its shares. What is Lauren's ownership percentage after the split?
Answers (1)
What are the two facets of a mode of production according to E. K. Hunt? Define them.
Answers (1)
Assume that a risky security pays an average cash flow of $100 in one year. The risk-free rate is 5%, and the expected return on the market index is 13%.
Answers (1)
Jeremy is considering forms of business organization, including the limited liability company (LLC), for his concessions business-Kettle Popt-Korn. Most states require that an LLC have
Answers (1)
is the process managers use to continually monitor all phases of the production process to ensure that quality is being built into the product from the beginning and that quality is not being inspected into the product at the end of the production
Answers (1)
Home » Business » Suppose Gerald works for Lola as a production assistant. Gerald and Lola fall in love, get married and have children. Gerald stops working for Lola in order to care for the children. What will be the effect of this scenario on GDP?
Sign Up Forgot Password?