Economics 9708 · AS & A Level · National income statistics

National income statistics — practice question

A government makes every young citizen carry out community service for a period of 6 months. The pay given to those doing the community service is lower than the earnings they would otherwise have received. What impact will this have on measured GDP and on national welfare?

  • Areduction / increase
  • Breduction / uncertain
  • Cunchanged / increase
  • Dunchanged / uncertain

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