GDP increases if prices decrease by ________ and quantities produced increase by ________.
A) 2%; 4%
B) 2%; 2%
C) 4%; 2%
D) 3%; 1%
E) 3%; 3%

Name: GDP increases if prices decrease by ________ and quantities produced increase by ________. A) 2%; 4% B) 2%; 2% C) 4%; 2% D) 3%; 1% E) 3%; 3%
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Question

Quizplus · Accepted Answer

GDP increases when the increase in quantities produced (4%) outweighs the decrease in prices (2%), leading to a net positive effect on GDP.

GDP Increases If Prices Decrease by ________ and Quantities Produced