Question

If GDP rises:

	A.	income and production must both rise.
	B.	income and production must both fall.
	C.	income must rise, but production may rise or fall.
	D.	none of the above.

Answer 1

There relation is direct here , the GDP is the money value of all final goods and services produced with in the domestic territory of the country. So when GDP rises the production also rises and the income of the people increases. The increase in the production is through the employing more labours so this raises the overall income of the economy. If the country have a higher GDP that means they increasing the production of the goods services and also the higher income increases the standard of living of the economy.

Ans:

A.	income and production must both rise.