When gross domestic product (GDP)increases,national income ________ and national output ________.

Question

Quizplus · Accepted Answer

GDP measures the total value of goods and services produced within a country's borders during a specific period of time. When GDP increases, it means that the economy is producing more goods and services, which means an increase in national output. This, in turn, leads to an increase in national income as workers earn more as production, sales, and profits increase. Therefore, the correct answer is B - when GDP increases, national income and national output both increase.

When Gross Domestic Product (GDP)increases,national Income ________ and National Output