Over Time, GDP May Increase as the Result of Either

question 106

Multiple Choice

Over time, GDP may increase as the result of either (i) expansion in the quantities of goods produced or (ii) higher prices. Which of the following is true?

• A)(i) will generally increase living standards, but (ii) will not.
• B)(ii) will generally increase living standards, but (i) will not.
• C)Both (i) and (ii) will generally increase living standards.
• D)Neither (i) nor (ii) will generally increase living standards.

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Definitions:

Productive Income

Earnings derived from engaging in productive activities, such as employment or investment.

Permanent Legal Residents

Individuals who are not citizens of a country but who have been granted the right to live in that country indefinitely and access most of its legal rights.

Family Sponsored

A process in immigration policy where family members can sponsor relatives for visas or residency, based on familial relationships.

Illegal Immigrants

Individuals who enter or reside in another country without proper authorization from that country.