Real gross domestic product (GDP) increases if

a. current prices increase
b. current quantities increase
c. current prices are constant
d. nominal GDP increases
e. nominal GDP decreases


Answer: b. current quantities increase

Economics

You might also like to view...

The following is an example of risk aversion

a. those applying for a well-paid job tend to be the most qualified b. more reckless drivers opt for cars with more safety devices c. the contractor with the lowest bid for a is the most qualified d. Initial Public Offerings (IPOs) seek investors when prospects look good

Economics

When the required reserve ratio is 20 percent, the money multiplier is:

a. 0.2. b. 1.2. c. 2. d. 2.5. e. 5.

Economics

Suppose a small island nation imports sugar for its population at the world price of $1,500 per ton. The domestic market for sugar is shown below.If the government provides a subsidy of $500 per ton, then producer surplus will be ________ per day.

A. $1,000 B. $8,000 C. $4,000 D. $0

Economics