If an Economy's GDP Rises,then It Must Be the Case

question 12

Multiple Choice

If an economy's GDP rises,then it must be the case that the economy's

• A)income rises and saving falls.
• B)income and saving both rise.
• C)income rises and expenditure falls.
• D)income and expenditure both rise.

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Definitions:

Government's Revenue

The total income received by the government from its various sources, including taxes, fees, fines, and other charges, used to fund public services and obligations.

Excise Tax

A type of tax charged on goods produced within the country; it is often levied on items such as alcohol, tobacco, and gasoline.

Hamburgers

A widely favored dish made up of a grilled or fried patty of minced meat, typically beef, served between slices of a bun or roll.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service versus how much they actually receive.