Vinny and Sandra have just had their first baby and need to make a decision about how to handle work and child care responsibilities. Explain how each of the options below will affect measured GDP, relative to when they both worked full time and had no child care responsibilities.

a. Both Vinny and Sandra will return to work and pay a child care provider $600 per week to care for their child.

b. Both Vinny and Sandra will return to work, while Sandra’s mother takes care of their child without financial compensation.

c. Both Vinny and Sandra will return to work, while Vinny’s brother takes care of their baby. They’ll pay him $600 a week to care for their child, but neither they nor Vinny’s brother will report those payments to the IRS or on any government surveys.

d. Vinny and Sandra will each return to work part time and split child care responsibilities.

e. Vinny will stay home to care for the baby, while Sandra returns to work full time.