Economics 9708 · AS & A Level · National income statistics

National income statistics — practice question

The government requires all young citizens to complete 6 months of community service at wages below market rates. What effect will this have on recorded GDP and on national welfare?

  • AGDP reduction; national welfare increase
  • BGDP reduction; national welfare uncertain
  • CGDP unchanged; national welfare increase
  • DGDP unchanged; national welfare uncertain

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