If government medical spending rises sharply because of a pandemic, which conclusion would be incorrect?

Correct answer: Higher GDP necessarily means public welfare increased

GDP records the value of produced medical services, so pandemic-related treatment expenditure can increase measured GDP. However, the same spending may be a response to widespread illness, deaths and loss of normal activity. Welfare must therefore be judged with health outcomes and other non-market effects, not GDP alone. Option D is incorrect because a rise in measured expenditure does not necessarily mean that public welfare has improved.