If GDP rises:
A)income and production must both fall.
B)income and production must both rise.
C)income must rise, but production may rise or fall.
D)none of the above.

Question

Quizplus · Accepted Answer

GDP stands for Gross Domestic Product, which is the total monetary value of all goods and services produced within a country's borders in a specific period. Therefore, if GDP rises, it means that there has been an increase in production and income. Option A is incorrect as it suggests that income and production must fall, which contradicts the definition of GDP. Option C is also incorrect as it states that income must rise, but production may rise or fall, which is not necessarily true. A rise in GDP implies that there has been an increase in both income and production. Option D is irrelevant as it does not provide any explanation.

If GDP Rises