Suppose that Moby went from a stay-at-home father to a paid worker. He now earns

$300

a week but pays

$100

a week for daycare and

$100

a week for a housekeeper. Moby is

A.

better off

by

$500

and GDP increases by

$200

.

B.

better off

by

$100

and GDP increases by

$500

.

C.

better off

by

$100

and GDP increases by

$450

.

D.

better off

by

$200

and GDP increases by

$500

.