The standard of living rises when population growth exceeds economic growth.
Answer the following statement true (T) or false (F)
False
If population is growing faster than output, this means that productivity and GDP per capita is falling and thereby standard of living is falling.
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When potential GDP increases, short-run aggregate supply also increases, but long-run aggregate supply does not change
Indicate whether the statement is true or false
A leftward shift in the aggregate supply curve along a fixed aggregate demand curve will cause cost-push inflation
a. True b. False Indicate whether the statement is true or false
If the production of a particular good involves significant external costs, to force the externality to be internalized the government might:
a. impose a tax on production of the good in order to increase production. b. impose a tax on production of the good in order to decrease production. c. offer a subsidy for production of the good in order to increase production. d. offer a subsidy for production of the good in order to decrease production.
The exchange rate is
a. the price of one nation's currency in terms of the currency of another nation. b. the amount households will spend on imports. c. the amount of foreign capital a nation receives when there is a trade surplus. d. the amount charged by bankers for loanable funds