Over the Last Fifty Years Both Real GDP and Prices

question 53

Multiple Choice

Over the last fifty years both real GDP and prices have trended upward in most countries.Continuing real GDP growth and inflation can be explained by

• A)continuing technological progress alone.
• B)continuing increases in the money supply alone.
• C)continued technological progress and continuing increases in the money supply.
• D)None of the above can explain continuing real GDP growth and inflation.

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Definitions:

Retirement Income

The total earnings an individual receives after retiring from work, which can come from pensions, savings, investments, or government benefits.

Discount Rate

The interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows or the rate charged by central banks for loans to commercial banks.

Cash Flows

The total figure of money being moved into and extracted from a business, critically affecting its liquid assets.

Rate Of Return

The gain or loss of an investment over a specified period, expressed as a percentage.