A new technology is discovered that results in all new cars producing 50 per cent less pollution.The technology costs nothing to produce and cars do not change in price.As a result of the technology,there is a reduction in the number of visits people make to the doctor to complain of breathing difficulties.Which of the following is true?
A) Real GDP decreases as a result of fewer doctor services being provided.
B) Nominal GDP does not change and real GDP increases.
C) Nominal GDP increases to reflect the improvement in the health of the population.
D) Real GDP is not affected.
E) Real GDP decreases to reflect the decrease in pollution.
Correct Answer:
Verified
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