Question

A woman hires a personal chef (cook) at $60,000 a year for his services. The two fall in love and get married, but the chef (cooking) services are still being performed with no explicit payment. Suppose that the two divorce after 1 year of marriage, but the woman continues to hire the chef for his services at $60,000 a year. What amount of the chef (cooking services) is added to GDP after the two divorce

Answer 1

The Answer is explained below

Step-by-step explanation:

When they both fall in love and got married there was a marital relationship between them and no explicit payments were made due to that there will be no addition to GDP but after divorce, there will be no marital relationship between them so the salary that should be added in GDP will be 60,000 because GDP is calculated on a yearly basis.