Suppose That Population Grows by 2 Per Cent

question 60

Multiple Choice

Suppose that population grows by 2 per cent. For the standard of living to rise, which of the following must occur?

• A) Nominal GDP must grow by more than 2 per cent.
• B) Real GDP must grow by more than 2 per cent.
• C) Real GDP per capita must grow by more than 2 per cent.
• D) Consumption spending must grow by more than 2 per cent.

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Definitions:

MC Shifts

Changes in the marginal cost curve, which can occur due to variations in factors like input prices, technology, or regulations.

Output Changes

Alterations in the quantity of goods or services produced by a firm, industry, or economy, influenced by factors like technology, input prices, and demand.

Federal Rules

The regulations established by federal authorities that govern legal procedures, evidence, and the administration of justice in federal courts.

Trial Judge

A judge who presides over court trials, making decisions on matters of law and overseeing the proceedings.