Which of the Following Policies Is Most Likely to Have

question 16

Multiple Choice

Which of the following policies is most likely to have an effect on GDP in the long run?

• A)increase consumption
• B)increase government purchases
• C)increase labour productivity
• D)reduce unemployment rates
• E)change factor utilization rates

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Definitions:

Investment

An asset or item acquired with the goal of generating income or appreciation in value.

Financial Securities

Financial instruments representing some type of financial value, including stocks, bonds, and options, which can be bought and sold in financial markets.

Real GDP

A measure of a country's economic output adjusted for price changes (inflation or deflation), reflecting the true value of goods and services produced.

Aggregate Demand

Whole demand for merchandise and services in an economy, at a particular overall price point within a defined temporal scope.