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2 March, 18:24

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

a. government purchases increase and taxes rise.

b. government purchases increase and taxes fall.

c. government purchases decrease and taxes rise.

d. government purchases decrease and taxes fall?

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Answers (1)
  1. 2 March, 20:21
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    The answer is government purchases increase and taxes fall. Real gross domestic product is an inflation-adjusted measure that show the cost of all goods and services manufacture by an economy in a given year, expressed in base year cost, and is mostly referred to as "constant price", "inflation-corrected" GDP or "constant dollar GDP".
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