In recent decades, women have worked more hours in paid jobs and fewer hours in unpaid housework. a. How would this increase in work hours affect GDP? b. Explain why this increase in measured GDP will overstate the true increase in output. Also explain how a set of augmented national accounts which includes home production would treat this change from nonmarket work to market work. c. Explain the paradox, “When a person marries his or her gardener, GDP goes down.”

In recent decades, women have worked more hours in paid jobs and fewer hours in unpaid housework. a. How would this increase in work hours affect GDP? b. Explain why this increase in measured GDP will overstate the true increase in output. Also explain how a set of augmented national accounts which includes home production would treat this change from nonmarket work to market work. c. Explain the paradox, “When a person marries his or her gardener, GDP goes down.”

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter7: Macroeconomic Measurements, Part Ii: Gdp And Real Gdp

Section: Chapter Questions

Problem 9WNG

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