If Real GDP Increases, We Know for Sure That

question 10

Multiple Choice

If real GDP increases, we know for sure that:

• A)prices have risen.
• B)output has risen.
• C)prices have risen but output has remained constant.
• D)prices have remained constant.

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Definitions:

Exports

Goods or services produced in one country and sold to buyers in another country.

Financial Account

Refers to a component of a country's balance of payments that records investments and financial transactions, including investments in foreign securities and direct investments.

Capital Account

The capital account records the exchanges of financial assets and liabilities between a country and the rest of the world, including direct investment and loans.

Current Account

A component of a country's balance of payments that includes transactions in goods, services, primary income, and secondary income flows between domestic and foreign entities.