During an expansion,real GDP rises.Which of the following also tends to rise?
A) Real consumption
B) Real investment
C) Employment
D) All of the above

Question

Quizplus · Accepted Answer

During an economic expansion, all of the above tend to rise. When real GDP rises, firms produce more and therefore tend to hire more workers. With more income, consumers tend to increase their spending on consumption goods. And, with a positive outlook for the economy, firms tend to increase their investment spending.

During an Expansion,real GDP Rises