Real GDP Definitely Increases If

question 123

Multiple Choice

Real GDP definitely increases if

• A)potential GDP decreases so that real GDP exceeds potential GDP.
• B)the AS curve shifts leftward and the AD curve does not shift.
• C)both the AD curve and the AS curve shift rightward.
• D)the AD curve shifts leftward and the AS curve shifts rightward.
• E)both the AD curve and AS curve shift leftward.

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Definitions:

Units

Basic quantities of a product or service measured to determine inventory, production levels, or sales.

Activity Variance

The difference between what was planned or expected in terms of costs or activity levels and what was actually achieved.

Net Operating Income

The profit generated from a company's operational activities, excluding taxes and interest.

Units

Basic quantities or measures of a product or service, representing a countable number of these items.