Question

Which of the following probably occurred as the U.S. economy experienced increasing real GDP in 1950? Check all that apply. Car sales declined. Corporate profits increased. Consumer spending declined. Total real income increased.

Answer 1

Answer:

Corporate profits increased.

Total real income increased.

Explanation:

Gross domestic product is defined as the total goods and services.thatbisnproduced within a country at a given time. It is a measure of the countrie's productivity and economic wealth.

GDP is affected by different factors such as income, interest rate, consumer spending and level of output.

When there is an increase in GDP the factors that affect it change to favour an increase.

If corporate profits increased, it means that productivity increased. More goods were produced and sold resulting in more profit.

An increase in total real income means more cash is available to invest in production leading to increased output and GDP.