Suppose the government passes a law eliminating public holidays, resulting in increased production of goods and services.Based on this scenario, which of the following statements is correct?

Question

Quizplus · Accepted Answer

GDP measures the total value of goods and services produced within a country's borders in a given time period. Public holidays, while important for leisure and quality of life, do not contribute to the production of goods and services. Therefore, eliminating public holidays would increase the production of goods and services and lead to an increase in GDP. Because GDP excludes leisure, choice A and C are incorrect. Choice D is also incorrect because GDP excludes leisure.

Suppose the Government Passes a Law Eliminating Public Holidays, Resulting