Which of the Following Is Correct If Real GDP Is

question 183

Multiple Choice

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

Operation

The day-to-day activities involved in running a business or an organization that are essential for generating revenues and profits.