Real GDP can increase if the
i. quantities of goods and services produced decrease and prices fall by a smaller percentage.
ii. quantities of goods and services produced decrease and prices fall by a larger percentage.
iii. quantities of goods and services produced decrease and prices do not change.
iv. quantities of goods and services produced increase.
A) i and iii B) iii only C) i only D) iv only E) i, ii, and iii
D
You might also like to view...
When a U.S. company makes a $200,000 donation to the International Red Cross to help the victims of an earthquake in India, the transaction is recorded in the
A) current account. B) one-way donations account. C) international help account. D) capital and financial account. E) official settlements account.
Suppose Starbucks currently charges $3.25 per cup for its latte
If Starbucks lowers the price to $3.00 per cup, based on the demand curve in the figure above, its total revenue will ________ because the demand for Starbucks latte is ________ over this price range. A) increase; elastic B) decrease; elastic C) increase; inelastic D) increase; unit elastic E) not change; unit elastic