A wife sweeps the floors and washes clothes so family saves 1000tl a month that they used to pay it to a cleaning company. how is GDP effected compare the GDP with cleaning company and wife services?

Answer 1

The GDP decreases when the wife begins to clean the house herself instead of outsourcing it to a company. Services are included in GDP but personal satisfaction or utility gained is not included. Since the family spent $12,000/month on cleaning services, nominal GDP will decrease by $12,000 for that year.