In Which Case Can We Be Sure Real GDP Rises

question 125

Multiple Choice

In which case can we be sure real GDP rises in the short run?

• A)foreign economies expand and taxes rise
• B)foreign economies expand and taxes fall
• C)foreign economies contract and taxes fall
• D)None of the above are correct.

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Definitions:

Farm Output

The total quantity of agricultural products produced by farms, including crops and livestock.

Agriculture

The practice of cultivating the soil, producing crops, and raising livestock for food, fiber, medicinal plants, and other products.

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing for the full adjustment of industry and economy.

Farms

Agricultural enterprises where crops are cultivated or livestock is raised for consumption or sale.