Question

suppose a woman marries her butler. after they are married, her husband continues to wait on her as before, and she continues to support him as before (but as a husband rather than an employee). consider how this marriage impacts how output in the economy is calculated. when the butler stops receiving a wage after the marriage, the value of gdp dropdown. however, if gdp is meant to reflect the value of all domestically produced goods and services, then perhaps gdp should dropdown because the butler’s services continue to be provided.

Explanation:

1. For the first blank: GDP measures market - based economic activity. Before marriage, the butler's services were a paid (market) service, so they were included in GDP. After marriage, the butler provides services as a spouse, not for a wage (non - market activity). So when the butler stops receiving a wage, the market - based value of his services is no longer counted, so GDP decreases (or falls).
2. For the second blank: If GDP is supposed to reflect all domestically produced goods and services (including non - market ones in a more comprehensive view), since the butler's services are still being provided (even though non - market now), GDP should include (or account for) these services. But in the standard GDP calculation, non - market household production is not included. However, from the perspective of reflecting all production, it should be adjusted to include (or be higher, or be adjusted to account for) these services. But in the context of the question, the first blank is about the standard GDP change (decreases) and the second blank is about what GDP should do (increase or be adjusted to include, but more precisely, the first blank: decreases; the second blank: increase (or be adjusted to include the non - market services)).

Answer:

First blank: decreases (or falls)
Second blank: increase (or be adjusted to include)

(Note: For the first blank, common options could be "decreases", "falls", "drops" etc. For the second blank, common options could be "increase", "be adjusted to include", "account for" etc. If there were specific options in a dropdown, but since they are not provided, this is the reasoning - based answer.)