Over the Last Fifty Years Both Real GDP and Prices

question 53

Multiple Choice

Over the last fifty years both real GDP and prices have trended upward in most countries.Continuing real GDP growth and inflation can be explained by

• A)continuing technological progress alone.
• B)continuing increases in the money supply alone.
• C)continued technological progress and continuing increases in the money supply.
• D)None of the above can explain continuing real GDP growth and inflation.

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Definitions:

Autocratic Governments

Autocratic governments are characterized by a single authority or leader with absolute power, where decision-making is centralized and citizen participation is minimal or non-existent.

Democratic Governments

Democratic governments are those in which power is vested in the hands of the people, either directly or through elected representatives, and decisions are made based on majority rule.

Intermediary Governments

These are levels of government situated between the central or national authorities and the local governments, facilitating coordination and policy implementation across different regions.

Elite Theory

A theory asserting that a small minority, consisting of members of the economic elite and policy-planning networks, holds the most power in society which they use to influence and control public policy.