In Which Case Can We Be Sure Real GDP Rises

question 109

Multiple Choice

In which case can we be sure real GDP rises in the short run?

• A)foreign economies expand and government purchases rise.
• B)foreign economies expand and government purchases fall.
• C)foreign economies contract and government purchases fall.
• D)foreign economies contract and government purchases rise.

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Definitions:

Year 1

Often refers to the first year in a specific context, such as the initial period of a business, investment, or study.

Merchandise Inventory

Refers to products that a company holds in stock with the intention of selling them to customers. It is a current asset on the balance sheet.

Cost of Goods Sold

The direct costs attributable to the production or purchase of the goods sold by a company during a given period.

Supplies

Materials and items that are used in the day-to-day operations of a business but which do not form part of the final product.