Question 17 of 23
Sizing Up the Economy Using GDP — End of Chapter Problem
Vinny and Sandra have just had their first baby and must decide how to handle work and child-care responsibilities. Vinny earns $1,000 per week working full time, and Sandra's full-time salary is $1,200 per week. They earn their full-time wages. Calculate the change in GDP for each situation, relative to when they both took time off for child-care responsibilities. If GDP falls, include a negative sign in your answer.
a. Both Vinny and Sandra return to work full-time and pay a child-care provider $900 per week.
$
b. Both Vinny and Sandra will return to work full-time, while Sandra's mother takes care of the baby without compensation.
$