If the Size of the Economy Has Grown for the Last

question 82

Multiple Choice

If the size of the economy has grown for the last three quarters, but prices overall have dropped, which of the following is true?

• A) The economy is in a contraction phase and CPI is increasing.
• B) The economy is in an expansion phase and GDP is decreasing.
• C) The economy is in an expansion phase and CPI is decreasing.
• D) The economy is in a contraction phase and CPI is decreasing.

---

Definitions:

Variable Cost Per Unit

The cost associated with producing one additional unit of a product, which may fluctuate with production volume.

Net Present Value

A calculation used to assess the profitability of an investment or project, considering the time value of money by discounting future cash flows to the present value.

Required Rate Of Return

A minimum yearly interest rate that motivates companies or individuals to invest in a specific security or endeavor.

Strategic Options

Options for future, related business products or strategies.