Which of the following will increase macroeconomic equilibrium real gross domestic product?
A)a decrease in government spending.
B)a decrease in productivity.
C)an increase in taxes.
D)a decrease in input prices.

Question

Quizplus · Accepted Answer

A decrease in input prices will decrease costs for firms, allowing them to produce more output at the same price, thus increasing equilibrium real gross domestic product. A decrease in government spending, an increase in taxes, and a decrease in productivity would all have the opposite effect, decreasing equilibrium real gross domestic product.

Which of the Following Will Increase Macroeconomic Equilibrium Real Gross