Real GDP Definitely Increases If

question 284

Multiple Choice

Real GDP definitely increases if

• A)both the AD curve and the AS curve shift rightward.
• B)both the AD curve and AS curve shift leftward.
• C)the AD curve shifts leftward and the AS curve shifts rightward.
• D)the AS curve shifts leftward and the AD curve does not shift.
• E)potential GDP decreases so that real GDP exceeds potential GDP.

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Definitions:

Monthly Payments

Regular payments made once a month as part of a financial agreement, such as a loan or mortgage.

Interest

The cost of borrowing money, typically expressed as a percentage of the amount borrowed.

Compounded Annually

Interest calculation method where the interest is calculated once a year and added to the principal sum, affecting the next year's interest calculation.

Quarterly Withdrawals

Periodic withdrawals from an investment or savings account that occur every three months.