QAEconomics › When economists determine that a nation’s GDP has declined, they can point to this as
Q

When economists determine that a nation’s GDP has declined, they can point to this as

1) a sign of economic shrinkage.

2) economic growth.

3) low unemployment.

4) poor leadership.

A

Answer: 1. Economic shrinkage.

The Gross Domestic Product (GDP) of a country refers to the monetary estimation of goods and services produced in a country within a fiscal year. A negative GDP value indicates a shrinkage in the economy.

A decline in a nation’s GDP is a sign that the nation’s economy is experiencing shrinkage, as it indicates that a country is in a state of depression. When this happens, consumers spend with respect to disposable income, tax rate, debt, etc. Economic shrinkage occurs when there is a reduction in spending, which reduces the market value of goods and services.

1 year ago
85 Views
Let's stand with the heroes Ukraine

As Putin continues killing civilians, bombing kindergartens, and threatening WWIII, Ukraine fights for the world's peaceful future.

Ukraine Live Updates mark
https://war.ukraine.ua/
Donate Directly to Ukraine