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:

Very Inelastic

Describes a situation where demand or supply hardly changes in response to changes in price.

Tax

A required financial imposition or alternative type of duty enforced on a taxpayer by a governing body to support government funding and assorted public expenses.

Tax

An obligatory monetary contribution or another kind of charge levied on a taxpayer by a government authority for the purpose of funding government operations and diverse public costs.

Higher Prices

A situation in which the cost of goods or services increases, often due to factors such as increased demand or higher production costs.