Per capita GDP will definitely fall when
A. Population increases.
B. The labor force decreases.
C. The population growth rate exceeds the economic growth rate.
D. GDP decreases.
Answer: C
You might also like to view...
According to Friedman, changes in the level of aggregate demand
a. are dominated by changes in the supply of money. b. cause the levels of output and employment to deviate from their natural rate for short periods of time. c. can cause movements of the economy away from the natural rate for at least 2 years. d. are dominated by changes in the demand for money. e. Both a and b.
Piece rates are practical when
A) individual output can be easily measured. B) the quantity of the work is of much less importance than quality. C) both employees and employers engage in opportunistic behavior. D) All of the above.
In the end, the monetarist version of the quantity theory of money still leads to the same classical conclusion: Although money cannot influence how much we produce, it does influence the prices of the goods and services we produce
Indicate whether the statement is true or false
During recessions, banks typically choose to hold more excess reserves relative to their deposits. This action
a. increases the money multiplier and increases the money supply. b. decreases the money multiplier and decreases the money supply. c. does not change the money multiplier, but increases the money supply. d. does not change the money multiplier, but decreases the money supply.