Over the Last Fifty Years Both Real GDP and Prices

question 53

Multiple Choice

Over the last fifty years both real GDP and prices have trended upward in most countries.Continuing real GDP growth and inflation can be explained by

• A)continuing technological progress alone.
• B)continuing increases in the money supply alone.
• C)continued technological progress and continuing increases in the money supply.
• D)None of the above can explain continuing real GDP growth and inflation.

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Definitions:

Property Income

Income from the ownership of real estate, tangible and intangible property, such as rentals, royalties, and dividends.

Transfer Payments

Financial payments made by governments that do not require an exchange of goods or services in return.

Money Market Fund

A type of mutual fund that invests in short-term, high-quality debt securities, offering investors liquidity and a low risk of loss.

Transfer Payments

Payments made by governments to individuals without any corresponding service or good being provided in return.