If You Slow Down or Stop Spending, What Happens to GDP

question 21

Multiple Choice

If you slow down or stop spending, what happens to GDP?

• A) GDP increases.
• B) GDP decreases.
• C) GDP is unchanged.
• D) GDP is not related to consumer spending.

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Definitions:

Two-part Tariff

A pricing strategy that consists of a fixed fee plus a variable usage fee, common in services like utilities.

Entry Fee

An initial charge required to gain access to a service, event, or establishment.

Tying

Practice of requiring a customer to purchase one good in order to purchase another.

Price Discrimination

The strategy of selling the same product at different prices to different groups of buyers, often based on their willingness to pay.