Which of the Following Leads to a Decrease in Real

question 261

Multiple Choice

Which of the following leads to a decrease in real GDP?

• A)an increase in government spending
• B)an increase in the inflation rate in other countries, relative to inflation in Canada
• C)an increase in interest rates
• D)households having increasingly optimistic expectations about future income
• E)an increase imports

---

Definitions:

Period Costs

Costs that are not directly tied to the production process and are expensed in the period in which they occur, such as selling, general, and administrative expenses.

Financial Reporting

The process of disclosing financial information and data about a company's financial performance, position, and cash flows to stakeholders and the public.

Units

The quantitative units of product or service in accounting or inventory management.

Average Cost

Average cost refers to the total cost of production divided by the number of units produced, used in evaluating cost efficiency.