Suppose that the U.S. Congress passed a law making the production and consumption of cigarettes illegal. Suppose that in spite of this law businesses continued to produce cigarettes and people continued to purchase them in exactly the same quantities that they are now produced and purchased. Considering only the production and purchase of cigarettes, how would U.S. GDP after the law compare to U.S. GDP before the law? Select one:

Suppose that the U.S. Congress passed a law making the production and consumption of cigarettes illegal. Suppose that in spite of this law businesses continued to produce cigarettes and people continued to purchase them in exactly the same quantities that they are now produced and purchased. Considering only the production and purchase of cigarettes, how would U.S. GDP after the law compare to U.S. GDP before the law? Select one:

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter5: An Introduction To Macroeconomics

Section: Chapter Questions

Problem 3TY

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