Which of the Following Could Cause Equilibrium GDP to Fall

question 34

Multiple Choice

Which of the following could cause equilibrium GDP to fall?

• A) an increase in autonomous investment
• B) a downward shift in the saving function
• C) an increase in amounts saved along an existing saving function
• D) a downward shift in the consumption function
• E) an increase in the nation's population

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Definitions:

Value-based Pricing

A pricing strategy where the price is set based on the perceived value to the customer rather than based on the cost of the product or historical prices.

Economic Value

The measure of the benefit provided by a good or service to an economic agent.

Target Costing

Target costing is a pricing method used during the development phase of a product to ensure that costs do not exceed the target price minus desired profit, thereby ensuring competitiveness and profitability.

Selling Price

The amount of money charged for a product or service, determined by considering factors such as cost of production, market demand, and competitors' prices.