Why Does a Change in GDP Affect Unit Costs and the Price

question 4

Multiple Choice

Why does a change in GDP affect unit costs and the price level?

• A) as GDP increases,productivity increases.
• B) as GDP increases the price of non-labor inputs increases and the nominal wage tends to increase.
• C) as GDP decreases,there are efficient gains
• D) as GDP increases,economies of scale allow for lower unit costs.
• E) as GDP increases the price of non-labor inputs decreases and the nominal wage tends to increase.

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