If GDP rises, what happens?
A) Income and expenditure must both rise.
B) Income and expenditure must both fall.
C) Income must rise, but expenditure may rise or fall.
D) Expenditure must rise, but income may rise or fall.

Question

Quizplus · Accepted Answer

GDP (Gross Domestic Product) measures the total value of all goods and services produced over a specific time period within a country. It is calculated either by summing up all of the income earned within the economy (income approach) or by summing up all of the spending (expenditure approach). Therefore, if GDP rises, it means that both income and expenditure within the economy have increased.

If GDP Rises, What Happens