If GDP Rises, What Happens

question 81

Multiple Choice

If GDP rises, what happens?

• A) Income and expenditure must both rise.
• B) Income and expenditure must both fall.
• C) Income must rise, but expenditure may rise or fall.
• D) Expenditure must rise, but income may rise or fall.

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Definitions:

Clayton Act

A U.S. antitrust law enacted in 1914 aimed at promoting fair competition and preventing monopolies.

Herfindahl Index

A measure of the size of firms in relation to the industry and an indicator of the amount of competition among them.

Horizontal Merger

A merger between firms that are in the same industry, often aimed at reducing competition and achieving economies of scale.

Herfindahl Index

An index calculating market concentration by summing the squares of the market shares of each firm within the industry.