Question

If an economy’s GDP falls, then it must be the case that the economy’s Group of answer choices income and saving fall. income and market value of all production both fall. income falls and market value of all production rises income rises and market value of all production falls.

Answer 1

Answer: Income and saving fall

Explanation:

A fall or contraction in the Gross Domestic Product (GDP) of a nation leads to business earnings decreasing and by extension the wages of people as businesses would have to cut back.

As people's income falls, they will have to consume more of their income in order to afford their needs and wants. This will leave less of their income remaining for Savings so these fall as well.