Why does GDP growth from higher health spending during a pandemic not prove welfare growth?

Correct answer: Because higher spending may result from greater illness

Paid healthcare services and medicines are generally included in GDP, so pandemic-related medical expenditure can raise measured output. But the spending may have increased because more people became ill, not because they became healthier or better off. GDP records the value of the response, while it does not automatically show the underlying loss of health or the suffering caused by disease. Therefore B is correct; A and D are false, and C is unsupported.