What will happen to the annual rate of growth of per capita real Gross Domestic Product (GDP) if the annual rate of population growth increases and the annual rate of growth of real GDP goes down?
A. The effect will depend upon whether the rate of population growth is greater than or less than the rate of growth of real GDP.
B. It will increase since an increase in population means an increase in labor that translates into an increase in real GDP.
C. It will decrease since an increase in the growth rate of population and a decrease in the growth rate of real GDP both work to decrease the growth of per capita real GDP.
D. It will increase since the annual rate of growth of real GDP does not influence the growth rate of per capita real GDP.
Answer: C
You might also like to view...
The short-run aggregate supply curve
A) is vertical. B) shows the impact changes in the price level have on the quantity of real GDP when resource prices are constant. C) illustrates the level of potential real GDP. D) shifts whenever the price level changes.
Which of the following statements is correct?
a. Because we have more food per capita, global food prices have decreased since 1875. b. Because we have less food per capita, global food prices have increased since 1875. c. Because we have less food per capita, global food prices have decreased since 1875. d. Because we have more food per capita, global food prices have increased since 1875.
Given the data provided in the table below, what will the marginal cost equal for production at quantity (Q) level 4?
a. $4.00
b. $5.00
c. $3.00
d. $1.00
Which of the following is least likely to be an effect of scarcity?
A) rationing device B) choice C) opportunity cost D) dollar price E) utility