Gross domestic product (GDP)
a. always increases over time
b. increases only if prices increase because the goods and services are measured in current prices
c. increases only if output of good and services increase
d. increases only if either prices increase or output increases, but not a combination of both
e. increases with either an increase in prices or an increase in output, or a combination of both
E
You might also like to view...
The Ricardo-Barro effect says that
A) government budget deficits have no crowding out effect because taxpayers increase their savings to match the quantity of loanable funds demanded by the government. B) government budget deficits crowd out private investment and thereby lower the real interest rate. C) government budget deficits resulting from an increase in government expenditure have no effect on investment but government deficits resulting from a decrease in taxes crowd out investment. D) government budget deficits cause households to save more in anticipation of higher taxes, which causes higher real interest rates.
The law of demand states that
a. quantity demanded is inversely related to price b. quantity demanded is directly related to income c. marginal utility is inversely related to quantity consumed d. total revenue is directly related to price e. demand curves are linear