Because of Improved Productivity, Wages Increase 10 Percent

question 294

Multiple Choice

Because of improved productivity, wages increase 10 percent. As a result, gross domestic income increases. What happens to Gross Domestic Product?

• A) Gross Domestic Product also increases since consumption expenditures would increase.
• B) Gross Domestic Product decreases as people pay more taxes on their higher incomes.
• C) Gross Domestic Product would not change since consumption expenditures would rise but investment spending would fall.
• D) Gross Domestic Product would decrease because businesses are spending more on wages.

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Definitions:

Psychologist

A professional specialized in the study of the mind and behavior, often involved in research, diagnosis, and treatment of mental health issues.

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Vygotsky's concept of the difference between what a learner can do without help and what they can achieve with guidance and encouragement from a skilled partner.

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Adjusting the level of parental guidance to fit the child’s efforts, allowing children to be more skillful than they would be if they relied only on their own abilities.

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Verbal communication that individuals have with themselves, typically used for self-guidance or problem-solving.