Question

Which of the following probably occurred as the U.S. economy experienced increasing real GDP in 1954? Check all that apply.

Car sales declined.

Total real income increased.

The unemployment rate declined.

Corporate profits increased.

Answer 1

B

Step-by-step explanation:

Answer 2

The answer are: total real income increased, the unemployment rate declined; Corporate profits increased.

Step-by-step explanation:

As real GDP increases, people/entities in the economy enjoy actual increase in their income ( income adjusted for inflation effect), thus they will tend to spend more, making "car sales declined" a wrong answer whil "total real income increased" the right one.

Higher spending also means demand for goods and services are higher helping to boost the corporate's profit up. Once the profit is higher, corporate will have plan to expand their business leading to a higher demand in labor which in turn reduce the unemployment rate.