If GDP Rises, What Happens to Income and Expenditure

question 67

Multiple Choice

If GDP rises, what happens to income and expenditure?  

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

---

Definitions:

Cycle Inventory

Inventory that turns over repeatedly throughout a period as part of the normal course of business operations.

Safety Inventory

Extra inventory held to guard against uncertainty in demand or supply, ensuring that demand can be met without stockouts.

Inexpensive Mode

A cost-effective way or method of completing a task or process, often referring to transportation or production methods.

High Value

Items or services that are considered to be of great importance or worth, often commanding a high price in the market.