If drug enforcement policies result in price increases for illegal drugs and the quantity sold decreases,GDP will decrease.

Question

Quizplus · Accepted Answer

A decrease in the quantity sold of illegal drugs due to drug enforcement policies would result in a decrease in the size of the underground economy, which is not accounted for in GDP calculations. Therefore, the impact on GDP would be negligible. Additionally, illegal drug sales do not contribute to the official GDP figure.

If Drug Enforcement Policies Result in Price Increases for Illegal