If a family previously cooked at home and now buys the same meals from the market what happens other things equal?

Correct answer: GDP will rise but the actual welfare change may be unclear

GDP follows the production boundary and records market transactions. When the family purchases meals, the restaurant or supplier provides a priced market service that is included in measured output. Earlier, the family’s own unpaid cooking was generally non-market household production and was not counted in GDP. The change can therefore raise GDP, but welfare is uncertain because convenience, cost, time, and satisfaction may change differently.