Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch

Exercise 6

Suppose a parent was earning $20,000 per year working at a local firm. The parent then decides to quit his job in order to care for his child, who was being watched by a babysitter for $10,000 per year. Does GDP rise, fall, or stay constant with this action, and how much does GDP change (if at all)?