Why Does a Change in GDP Affect Unit Costs and the Price

question 4

Multiple Choice

Why does a change in GDP affect unit costs and the price level?

• A) as GDP increases,productivity increases.
• B) as GDP increases the price of non-labor inputs increases and the nominal wage tends to increase.
• C) as GDP decreases,there are efficient gains
• D) as GDP increases,economies of scale allow for lower unit costs.
• E) as GDP increases the price of non-labor inputs decreases and the nominal wage tends to increase.

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Definitions:

Reductionist

A perspective or approach that simplifies complex phenomena by reducing them to their basic elements.

Unconscious Desires

Unconscious Desires are wishes, wants, or needs that an individual is not aware of but that influence behaviors and can be revealed through dreams, slip of the tongue, or psychoanalytical methods.

Mental Gestalts

Integrated patterns or configurations that arise from the psychological organization of thoughts, perceptions, or experiences.

Environmental Stimuli

External events or circumstances that can affect an organism's behavior or physiological responses.