Real GDP measures output of final goods and services in physical units

Increased productivity in the agricultural sector in conjunction with an inelastic demand curve for agricultural goods has caused a(n) __________ in output, a(n) __________ in price, and __________ revenues for farmers

A) increase; decrease; higher B) increase; decrease; lower C) decrease; increase; higher D) decrease; increase; lower E) increase; increase; higher

Which of the following statements, if any, is correct for a nation that is producing only consumer and capital goods?

A. Other things equal, the more consumer goods a nation produces, the greater will be its future growth rate. B. Other things equal, the more capital goods a nation produces, the greater will be its future growth rate. C. There is no general relationship between the current division of output between consumer and capital goods and the future growth rate. D. None of these statements is correct.