To understand how the shares of GDP are allocated in a market economy, which of the following factors needs to be understood?
A)The rate of growth of potential GDP
B)The rate of growth of aggregate demand
C)The real rate of interest
D)The rate of growth of the labor force
E)The rate of inflation

Question

Quizplus · Accepted Answer

The real rate of interest affects investment and consumption decisions, influencing how GDP is allocated among different sectors in a market economy.

To Understand How the Shares of GDP Are Allocated in a Market