Explain briefly whether each of the following would cause GDP to overstate or understate the degree of change in the broad standard of living. a. The environment becomes dirtier b. The crime rate declines c. A greater variety of goods become available to consumers d. Infant mortality declines

When the environment becomes dirtier, GDP overstates the change in the broad standard of living as it only accounts for economic growth and not the negative impact of pollution. The decline in the crime rate causes GDP to understate the change in the broad standard of living as it doesn't capture improvements in safety and well-being. When a greater variety of goods become available to consumers, GDP might not entirely overstate or understate the change in the broad standard of living, as both GDP and standard of living might increase, but GDP might not fully capture the improvement. Lastly, with a decline in infant mortality, GDP understates the degree of change in the broad standard of living, as it does not fully account for the social and health improvements derived from lower infant mortality rates.