Economics 9708 · AS & A Level · National income statistics

National income statistics — practice question

A government obliges all of its young citizens to perform community service for 6 months. The pay received by those doing the community service is lower than what they would otherwise have earned. What effect will this have on measured GDP and on national welfare?

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

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