Which of the Following Measures the Change of Real GDP

question 8

Multiple Choice

Which of the following measures the change of real GDP in the short run as a result of an increase in government purchases?

• A)Spending balance
• B)Potential GDP
• C)Life-cycle model
• D)Keynesian multiplier
• E)45-degree line

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Definitions:

Value

The relevance, merit, or utility of something for someone.

Transaction-oriented Marketing

Marketing strategies focused primarily on making sales transactions rather than building long-term relationships with customers.

Premium Pricing

A competitor-based pricing method by which the firm deliberately prices a product above the prices set for competing products to capture those consumers who always shop for the best or for whom price does not matter.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.