Increases in Discretionary Income Can Occur as a Result of All

question 85

Multiple Choice

Increases in discretionary income can occur as a result of all of the following EXCEPT:

• A) an increase in gross income.
• B) a decrease in taxes.
• C) an increase in disposable income.
• D) an increase in savings.
• E) a decline in inflation.

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Definitions:

GDP Deflator

An economic metric that converts output measured at current prices into constant-dollar terms to remove the effect of inflation.

Per Capita Real GDP

An economic measure that divides the real gross domestic product by the total population, indicating the average economic output per person, adjusted for inflation.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced in an economy in real terms.

Nominal GDP

The market value of all final goods and services produced within a country in a year, measured using current prices without adjusting for inflation.