By the 1960s, a larger percentage of women were entering the labor force. Because more women were working, their production of services within the home, such as cooking and cleaning, may have fallen. In addition, they may have employed others to do some tasks that they had previously done themselves, including caring for their children.
a. How did these changes affect GDP as measured by the BEA?
b. If we define “actual GDP” as GDP measured with the inclusion of such things as household production, illegal goods and services, and other typically excluded variables, how would actual GDP have changed?