Over Time, GDP May Increase as the Result of Either

question 129

Multiple Choice

Over time, GDP may increase as the result of either (I) expansion in the quantities of goods produced or (ii) higher prices. Which of the following is true?

• A) (I) will generally increase living standards, but (ii) will not.
• B) (ii) will generally increase living standards, but (I) will not.
• C) Both (I) and (ii) will generally increase living standards.
• D) Neither (I) nor (ii) will generally increase living standards.

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Definitions:

Semantic Code

A cognitive system used for understanding and producing language, particularly in terms of meaning and relationships between words.

Encoding

The method through which data is converted into a format that is capable of being retained in memory.

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The mental capabilities that include the ability to reason, plan, solve problems, think abstractly, comprehend complex ideas, learn quickly, and learn from experience.

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The actual age of an individual or object, measured in units of time since birth or creation.