Question

Over the last few decades, Americans have chosen to cook less at home and eat more at restaurants. This change in behavior, by itself, has Group of answer choices reduced measured GDP. not affected measured GDP. increased measured GDP only to the extent that the value of the restaurant meals exceeded the value of meals previously cooked at home. increased measured GDP by the full value of the restaurant meals.

Answer 1

Answer:

increased measured GDP by the full value of the restaurant meals.

Explanation:

Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.

GDP calculated using the expenditure approach = Consumption spending + Investment spending + Government Spending + Net Export

Some items are not included in the calculation of GDP. Some of these items are :

1. Services rendered to ones self

2. Intermediate goods

3. Illegal activities

4. Transfer payment by government.

Households cooking at home is an example of services rendered to ones self and it is not included in the calculation of GDP.

While services rendered by resturants are included in the GDP through consumption spending by households.

So if families decide to eat more at resturants, GDP is increased by the full value of resutrant meals.

I hope my answer helps you