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20-08-2020
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Which of the following will not increase a nation’s real GDP? rev: 05_30_2018 Multiple Choice labor productivity average price level technological progress number of workers

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ProfChris1 ProfChris1

23-08-2020

Answer:

Average price level

Explanation:

Average price level will not increase a nation's real GDP.

Aggregate demand (AD) curve reveals that when the price level decreases, real GDP increases. But when it is on the average level, it does not affect the real GDP.

Wealth effect, interest rate effect and exchange rate effect are reasons why real GDP increases in response to decrease in price level.

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