Which of the Following Is Correct If Real GDP Is

question 104

Multiple Choice

Which of the following is correct if real GDP is $20 trillion and spending is $20.5 trillion?

• A) Inventories increase by 0.5 trillion.
• B) Inventories decrease by 0.5 trillion.
• C) GDP increases by 0.5 trillion.
• D) GDP decreases by 0.5 trillion.
• E) Spending and GDP are in equilibrium.

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Definitions:

Police Power

The capacity of the states to regulate behavior and enforce order within their territory for the betterment of the health, safety, morals, and general welfare of their inhabitants.

Health

The state of being free from illness or injury; a person's mental or physical condition.

Welfare

Government programs designed to support the well-being of the population by providing assistance to individuals and families in need, including financial aid, healthcare, and social services.

Enumerated

Specifically listed, mentioned, or counted, often referring to a detailed list of items, rights, or powers.