If GDP Falls, What Happens to Income and Expenditure

question 24

Multiple Choice

If GDP falls, 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.

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Definitions:

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