When Computing Economic Growth,changes in Nominal Gross Domestic Product (GDP)must

question 92

Multiple Choice

When computing economic growth,changes in nominal gross domestic product (GDP) must be adjusted to reflect population growth because

• A) if real GDP remains the same,an increase in the population actually means a lower average standards of living.
• B) an increase in population will tend to reduce nominal GDP.
• C) changes in population tend to have no effect on standards of living.
• D) if real GDP remains the same,an increase in the population actually means a raised average standards of living.
• E) an increase in the population will tend to decrease average prices.

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Definitions:

Uncertain Tax Positions

Tax positions taken in a filed tax return that may be challenged by the taxation authorities and which may have to be adjusted in the future.

Technical Merits

The inherent value or quality of a project, system, or process based on its technical specifications, efficiency, and effectiveness.

Statutory Rate

The legally enforced tax rate set by government legislation.

Differential Tax Rates

Different rates of taxation applied to different levels of income, types of taxpayers, or types of activities, to achieve various economic or social objectives.