Author Question: The approach to GDP that sums compensation of employees, rental income, corporate profits, net ... (Read 116 times)

WhattoUnderstand · **on:** Jun 29, 2018

The approach to GDP that sums compensation of employees, rental income, corporate profits, net interest, proprietors' income, depreciation, and indirect taxes and subtracts subsidies is the

A) opportunity cost approach.
B) expenditure approach.
C) added cost approach.
D) income approach.

Question 2

The positive relationship between short-run aggregate supply and the price level indicates that, in the short run

A) firms produce more output as the price level falls.
B) firms produce more output as the price level rises.
C) the money wage rate increases when moving along the short-run aggregate supply curve.
D) lower price levels are more profitable for firms.