When Mr. Wilson worked full time, he paid a service to have his house cleaned twice a month. Now that he is retired, Mr. Wilson does his own cleaning. What is the effect on GDP?

GDP falls as a result of this change

Explanation: Gross Domestic Product (GDP) is the monetary value of all finished goods and services made within a country within a specific period of time. However, GDP provides an economic snapshot of a country it is used to estimate the size of an economy and growth rate. In the scenario above, now that Mr. Wilson is retired, and he does his own cleaning, GDP falls as a result of this change.

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