Final answer:
Increasing the GDP of a nation can lead to 1) an increase in pollution due to economic production; however, it might also lead to a decrease in pollution if the growth is paired with environmental advancements. The rise in GDP could overstate or understate the standard of living depending on factors like environmental conditions, crime rates, availability of goods, and health outcomes such as infant mortality that are not directly measured by GDP.
Step-by-step explanation:
Increasing the gross domestic product (GDP) of a nation can be associated with various effects on society and the environment. An increase in pollution can occur because economic production often involves activities that can harm the environment. This tradeoff exists regardless of the country's income level or economic system.
On the other hand, there could also be a decrease in pollution if economic growth is accompanied by investments in cleaner technologies and effective environmental regulations. Furthermore, an increase in GDP might lead to a higher standard of living, which could potentially be accompanied by a decrease in crime rates, an increase in consumer goods variety, and a decline in infant mortality. Each of these aspects affects the standard of living in ways that GDP does not directly measure.
For instance, if the environment becomes dirtier as GDP grows, this would reduce the broad standard of living, meaning that GDP might overstate the improvement in living conditions. Conversely, if the crime rate declines or a greater variety of consumer goods becomes available, this would increase the standard of living, suggesting that GDP might understate the enhancement in living conditions. Similarly, a decline in infant mortality would indicate an improved health standard, also suggesting that GDP by itself could understate improvements.