When an Economy's Production Capacity Is Expanding

question 41

Multiple Choice

When an economy's production capacity is expanding:

• A)nominal GDP, but not necessarily real GDP, is rising.
• B)net exports is always a positive amount.
• C)disposable income exceeds personal income.
• D)gross investment exceeds depreciation.

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Definitions:

Decimal Places

The number of digits to the right of the decimal point in a numerical value.

Divide

To perform division, which is one of the four basic operations in mathematics, separating something into equal parts or groups.

Monetary Products

Financial products and instruments that are used for saving, investing, or making transactions, such as currencies, stocks, bonds, and savings accounts.

Round Off

The process of adjusting numbers to their nearest value based on a specific unit of measure, simplifying calculations or representations.