If an Economy's GDP Rises,then It Must Be the Case

question 12

Multiple Choice

If an economy's GDP rises,then it must be the case that the economy's

• A)income rises and saving falls.
• B)income and saving both rise.
• C)income rises and expenditure falls.
• D)income and expenditure both rise.

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Definitions:

Unearned Revenues

Income received by a company for goods or services yet to be delivered or performed.

Liability Uncertainty

Liability uncertainty involves not knowing the exact amount or timing of future outflows due to existing obligations.

Sales Taxes Payable

Current liabilities on a company’s balance sheet, representing taxes collected from customers on behalf of governmental authorities which are yet to be remitted.

Credited

An accounting entry that increases a liability or equity account, or decreases an asset or expense account.