Real GDP Can Increase If the

question 192

Multiple Choice

Real GDP can increase if the
I.quantities of goods and services produced decrease and prices fall by a smaller percentage.
Ii.quantities of goods and services produced decrease and prices fall by a larger percentage.
Iii.quantities of goods and services produced decrease and prices do not change.
Iv.quantities of goods and services produced increase.

• A)i only
• B)iii only
• C)iv only
• D)i and iii
• E)i,ii,and iii

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Definitions:

Factory Supplies

Consumable items used in a manufacturing process, excluding raw materials and labor.

Sales Commissions

A portion of the sale amount given to salespersons as a reward for selling products or services.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life.

Equipment

Includes tangible assets used in operations, such as machinery and computers, which have a useful life beyond one accounting period.