What would happen to GDP if the amount of pollution increased, ceteris paribus?
A) GDP would decrease since consumption would be lower.
B) GDP would decrease since government spending would have to increase.
C) GDP would remain the same since an increase in consumption would be offset by a decrease in investment.
D) GDP would remain the same since pollution is not reflected in the value.

Question

Quizplus · Accepted Answer

Gross Domestic Product (GDP) measures the value of all final goods and services produced within a country's borders in a given period, regardless of environmental factors like pollution. An increase in pollution does not directly affect the calculation of GDP, as GDP does not account for environmental degradation or the depletion of natural resources.

What Would Happen to GDP If the Amount of Pollution