GDP Rises Can Rise in an Expansion Due To

question 41

Multiple Choice

GDP rises can rise in an expansion due to:

• A)an increase in technology, A, directly increasing GDP.
• B)an increase in technology, A, causing an increase in labour, L and GDP.
• C)an increase in technology, A, causing an increase in the capital utilization rate, the quantity of capital services and GDP.
• D)all of the above.

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs, indicating its profitability.

Variable Costs

Costs that vary directly with the level of production or volume of output.

Break-even

The point at which total cost and total revenue are equal, resulting in no net loss or gain.

Variable Costs

Expenses that change in proportion to the level of production or business activity.