If a Country's Real GDP Increases from One Year to the Next

question 82

Multiple Choice

If a country's real GDP increases from one year to the next, we can conclude the country experienced:

• A) inflation and no change in output.
• B) an increase in output and no change in prices.
• C) a definite increase in output, and may have experienced an increase in prices.
• D) definite inflation, and may have experienced an increase in output.

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Definitions:

Supply Decrease

A reduction in the quantity of a good or service that producers are willing and able to offer at any given price.

Demand Decrease

A situation where there is a reduction in the quantity of a good or service that consumers are willing and able to purchase at any given price.

Equilibrium

A condition or state in which economic forces are balanced, such as the point where supply equals demand.

Market Clear

A situation in which the market reaches a state where quantity supplied equals quantity demanded, leaving no surplus or shortage.