In Which Case Can We Be Sure Real GDP Rises

question 109

Multiple Choice

In which case can we be sure real GDP rises in the short run?

• A)foreign economies expand and government purchases rise.
• B)foreign economies expand and government purchases fall.
• C)foreign economies contract and government purchases fall.
• D)foreign economies contract and government purchases rise.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales activities within a certain range or period.

Weighted Average

A calculation that takes into account the varying weights of different items in a dataset, commonly used in inventory costing.

Unit Selling Price

The price that a customer pays for one unit of a product or service.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, giving weight to some numbers more than others.