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What Would Happen to GDP If the Amount of Pollution

Question 150

Multiple Choice

What would happen to GDP if the amount of pollution increased, ceteris paribus?


A) GDP would decrease since consumption would be lower.
B) GDP would decrease since government spending would have to increase.
C) GDP would remain the same since an increase in consumption would be offset by a decrease in investment.
D) GDP would remain the same since pollution is not reflected in the value.

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