If an economy's GDP rises, then it must be the case that the economy's
A)income and saving rise.
B)income falls and the market value of all production rises.
C)income rises and the market value of all production falls.
D)income and the market value of all production both rise.

Question

Quizplus · Accepted Answer

GDP measures the total market value of all final goods and services produced in an economy. Therefore, if GDP rises, it indicates an increase in the market value of production. Since GDP is also a measure of national income, an increase in GDP implies that the economy's income has risen as well.

If an Economy's GDP Rises, Then It Must Be the Case