What will happen to the annual rate of growth of per capita real Gross Domestic Product (GDP) if real GDP grows at a constant rate of 4 percent and the annual rate of population growth goes from 3 percent to 3.5 percent?
A. The annual rate of growth of per capita real GDP will remain unchanged.
B. The annual rate of growth of per capita real GDP will decrease from 1 percent to 0.5 percent.
C. The annual rate of growth of per capita real GDP will increase from -1 percent to -0.5 percent.
D. The annual rate of growth of per capita real GDP will increase from 7 percent to 7.5 percent.
Answer: B
You might also like to view...
The demand for money increases and the demand for money curve shifts rightward if
A) the real interest rate increases. B) the inflation rate increases. C) the nominal interest rate increases. D) the price level falls. E) real GDP increases.
An example of a government-based approach to improve the quality of information in financial markets is ________
A) financial news networks B) mandatory disclosures C) government-directed credit D) government safety nets
Suppose two economists disagree about who would be helped or hurt by certain legislation. These disagreements
a. are positive in nature b. are minor and rarely lead to different policies or conclusions c. are normative in nature d. occur as the result of a mistake made by an economist e. occur because economic models are more complex, and subject to error, than the real world
If a central bank reduced inflation by 3 percentage points and in the short run this made output fall by 3 percentage points for 3 years and the unemployment rate rise from 3 percent to 9 percent for three years, the sacrifice ratio is
a. 1. b. 2. c. 3. d. None of the above is correct.