Problem
Real GDP is often taken as an indicator of the economic well-being of citzens. What impact would each of the following have on real GDP? Would well-being of the citizens increase or decrease as a result?
a. On average, people in a country decide to increase the number of hours they work by 5%.
b. Spending on national security increases in response to a terrorist attack.
c. The price level and nominal GDP increase by 10%.