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Suppose the Government Eliminates All Environmental Regulations And,as a Result,the

Question 19

Multiple Choice

Suppose the government eliminates all environmental regulations and,as a result,the production of goods and services increases,but there is considerably more pollution.Based on this scenario,which of the following statements is correct?


A) GDP would definitely increase,despite the fact that GDP includes environmental quality.
B) GDP would definitely decrease because GDP includes environmental quality.
C) GDP would definitely increase because GDP excludes environmental quality.
D) GDP could either increase or decrease because GDP excludes environmental quality.

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