When Output Rises,AFC

question 39

Multiple Choice

When output rises,AFC

• A)must be rising.
• B)must be falling.
• C)may be falling or rising.
• D)will remain constant.

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Definitions:

Disposable Personal Income

The amount of money that households have available for spending and saving after income taxes have been accounted for.

Gross National Product

The total value of all goods and services produced by a country's residents and businesses, including those produced abroad, over a specific time period.

National Income

The total amount of money earned within a country, including wages, rent, interest, and profits.

U.S. GDP

The total monetary value of all goods and services produced within the United States in a specific time period.