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

---

Definitions:

Accounting Perspective

A viewpoint characterizing how accounting principles and practices are applied to record, summarize, and interpret financial information.

Accounting Equation

The foundational formula in accounting that represents the relationship between a company's assets, liabilities, and equity: Assets = Liabilities + Equity.

Accounting Equation

The foundational equation in accounting, Assets = Liabilities + Owner’s Equity, ensuring balance in financial reporting.

Assets

Economic resources owned or controlled by a business or individual, expected to produce future benefits.