Real GDP can increase if the
i. quantities of goods and services produced decrease and prices fall by a smaller percentage.
ii. quantities of goods and services produced decrease and prices fall by a larger percentage.
iii. quantities of goods and services produced decrease and prices do not change.
iv. quantities of goods and services produced increase.
A) i and iii B) iii only C) i only D) iv only E) i, ii, and iii
Question 2
As the real wage rate rises, the opportunity cost of
A) working rises.
B) saving rises.
C) leisure rises.
D) buying goods and services rises.
E) leisure falls.
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