1.A couple have their first baby. Explain how each of the work/childcare options below will affect measured GDP, relative to when they both worked full-time and had no child care needs.

a)Both return to work and pay a child-carer $600 a week to look after the child.

b)Both return to work and their mothers share child care without compensation.

c)Both return to work and a neighbour cares for the child.They pay her $600 a week but no one will report this to the IRS.

d)They each return to work part time and share the child care responsibilities.

e)One returns to work and one stays home.