A New Technology Is Discovered That Results in All New

Multiple Choice

A new technology is discovered that results in all new cars producing 50 percent 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) Real GDP is not affected.
C) Nominal GDP increases to reflect the improvement in the health of the population.
D) Real GDP decreases to reflect the decrease in pollution.
E) Nominal GDP does not change and real GDP increases.