A relationship between two variables in which one variable increases at the same time that the other increases is called

If GDP falls:

A) income and production must both fall. B) income and production must both rise. C) income must rise, but production may rise or fall. D) none of the above.

In response to changing inventories in Figure 9.8, if the economy produces at full employment of $400 billion, firms will attempt to

A. Increase employment and buy more machinery. B. Increase employment and buy less machinery. C. Reduce employment and buy less machinery. D. Reduce employment and buy more machinery.