Answer to Question #153144 in Macroeconomics for Nderitu Silvanus

Question

b) Assume that a man marries his longtime friend when both of them were employees of the Teachers Service Commission. After they are married, his wife continues to wait on him as before and he continues to support her as before (but as a husband rather than as an employee). How does this marriage impact the GDP?

Answer 1

After the man marries the woman and only the man works for that family, then GDP will rise. Reason for the rise is that the man will be earning salary because the category exists in the GDP calculation since GDP calculates total value of all goods and services.

After they are married, he will continue to wait on her and that service will still be part of GDP, since goods and services are part of GDP calculation. GDP does not measure household chores so his services are not contributing to the economy when we look from the perspective of GDP.