An increase in national income could by caused by which of the following?
A)an increase in depreciation
B)an increase in personal taxes
C)a decrease in personal income
D)an increase in gross domestic product

Question

Quizplus · Accepted Answer

An increase in gross domestic product (GDP) can lead to an increase in national income, as GDP measures the total value of goods and services produced in a country over a specific period of time. Therefore, an increase in GDP indicates that there has been an increase in economic activity, leading to an increase in national income.

Options A, B, and C are incorrect because an increase in depreciation, an increase in personal taxes, or a decrease in personal income would all have negative effects on national income.

An Increase in National Income Could by Caused by Which