A Country's Real GDP Can Increase for Brief Periods of Time

question 26

Multiple Choice

A country's real GDP can increase for brief periods of time

• A)only if its aggregate demand increases.
• B)only if its aggregate supply increases.
• C)if either its aggregate demand or its aggregate supply increases.
• D)only if both its aggregate demand and its aggregate supply increases.

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Definitions:

Accounts Payable

Liabilities of a company that represent amounts owed to creditors for goods and services received but not yet paid for.

Journal Entry

A record in the books of account that represents a financial transaction.

Payroll Taxes Expense

Taxes that employers are required to pay based on the wages and salaries of their employees, such as Social Security and Medicare taxes.

FICA Tax

A U.S. federal payroll tax used to fund Social Security and Medicare, distributed between employees and employers.