If your neighbor hires you to mow her lawn instead of doing it herself, what will happen to GDP? Why? Did output change?
a. GDP will increase because the economic activity of lawn mowing is now accounted for in the calculation of GDP.
b. GDP will remain unchanged because the act of mowing the lawn is not a significant enough economic activity to impact overall GDP.
c. GDP will decrease because the neighbor's decision to hire someone to mow the lawn means she is spending less money, reducing overall economic activity.
d. Output did not change, as the same amount of lawn mowing is being done, just by a different person.