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Assume That There Is a Devastating Wildfire in Northern California

Question 42

Multiple Choice

Assume that there is a devastating wildfire in Northern California. Putting out the fire is very expensive, and many homes have to be rebuilt. How does this affect GDP?


A) GDP will go up.
B) GDP will go down.
C) GDP will be unaffected.
D) It depends on whether the government borrowed money to pay for the cost of containing the fire.

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