Which of the following accurately describes an effect of Hurricane Harvey on GDP?
A)GDP would decrease reflecting the costs of cleanup.
B)GDP would increase reflecting the costs of cleanup.
C)GDP would increase reflecting the decrease in production that occurred during the storm and the productive capacity lost in the storm.
D)GDP would increase well-being.

Question

Quizplus · Accepted Answer

GDP measures the total economic output, including spending on goods and services. The costs of cleanup and rebuilding after a disaster like Hurricane Harvey are included in GDP calculations as increased spending, thus potentially increasing GDP despite the destruction and loss.

Which of the Following Accurately Describes an Effect of Hurricane