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re: Here's an economics multiple choice question for you all
Posted on 5/15/14 at 4:27 pm to bayoubengals88
Posted on 5/15/14 at 4:27 pm to bayoubengals88
I would go with C but you can make a case that if they are basing "economic growth" solely on GDP, you could say A
1
Posted on 5/15/14 at 4:42 pm to Broke
A is wrong because an increase in productivity is most likely due to an increase in the capital to labor ratio, which is likely due to a decrease in the labor function, which would lead to decreased GDP output.
Increase in consumer spending increases GDP, per the widely accepted formula of
C + I + G + NX = Y (GDP)
Increase in consumer spending increases GDP, per the widely accepted formula of
C + I + G + NX = Y (GDP)
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