If Country A's real GDP per person is growing at 6 percent and Country B's real GDP per person is growing at 3 percent, then
A) the standard of living is higher in Country A.
B) the standard of living is higher in Country B.
C) the standard of living is growing more rapidly in Country A.
D) We cannot say whose standard of living is growing more rapidly without knowing the population growth rate.
E) We cannot say whose standard of living is growing more rapidly without knowing the growth rate of real GDP.
C
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Suppose a credit union strives for a 3% real return on its loans to members, and expects a 2% inflation rate. What nominal rate of interest should it charge its members?
A) 0% B) 1% C) 3% D) 6%
The equation M × V = P × Y is called the
a. multiplier formula. b. transactions formula. c. equation of exchange. d. balanced exchange formula.
To reduce the amount of excess reserves in an economy, the central bank of a country can: a. reduce the interest rate on loans granted by commercial banks to the public
b. pay interest on the reserves that commercial banks have deposited with the central bank. c. reduce the discount rate. d. buy government securities from the public.
Which of the following is the best equation for calculating the growth rate in the standard of living?