A government makes all of its young citizens do community service for 6 months. The wages given to those doing the community service are lower than the pay they would otherwise have received. What impact will this have on recorded GDP and on national welfare?
- Aeffect on GDP: reduction; effect on national welfare: increase
- Beffect on GDP: reduction; effect on national welfare: uncertain
- Ceffect on GDP: unchanged; effect on national welfare: increase
- Deffect on GDP: unchanged; effect on national welfare: uncertain