GDP can increase from one year to the next by:
A) increases in prices while quantities of goods and services are constant.
B) increases in the quantities of goods and services produced while prices remain constant.
C) both prices and quantities of goods and services increase.
D) all of the above.
D
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The choice between hawk and dove positions depends on
a. the extent of cyclical unemployment at the time of the decision b. relative importance of short-run and long-run monetary considerations c. cooperation between Congress and the monetary authorities d. the frequency of negative supply shocks e. the Fed's relative concern for price and employment stability
According to purchasing-power parity, inflation in the U.S. causes the dollar to
a. depreciate relative to all other currencies. b. depreciate relative to currencies of countries that have lower inflation rates. c. appreciate relative to all other countries. d. appreciate relative to currencies of countries that have lower inflation rates.