Answer to Question #80808 in Macroeconomics for AYANDA

Question

Which of the following statements is/are correct?

a) Suppose the real GDP in 2005 is 400, and is 420 in 200. This shows that economic growth in 2006 is 20%
b) If the economy is in the cyclical upswing, the policy makers should solve the problem by raising the taxes
c) Domestic demand is primarily a function of income

1) a
2) b
3) b and c
4) a and c
5) All the statements are correct

Answer 1

3) b and c