Which of the Following Leads to an Increase Real GDP

question 270

Multiple Choice

Which of the following leads to an increase real GDP?

• A)a decrease in government spending
• B)a decrease in the inflation rate in other countries, relative to the inflation in the United States
• C)a decrease in interest rates
• D)households have increasingly pessimistic expectations about future income
• E)an increase in imports

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Definitions:

Expense Recognition Principle

The accounting principle that dictates expenses should be recognized in the period in which they are incurred, contributing to the accurate reporting of financial results.

Wages Expense

The total cost incurred by an enterprise for the wages paid to employees, reported on the income statement.

Operating Cycle

The time period between the acquisition of goods for sale and the receipt of cash from customers, measuring the efficiency of a company's operational processes.

Inventory Purchases

Transactions involved in buying goods and materials to be sold or used in the production process by a business.