Holding Everything Else Unchanged, If a Nation's Output Grows at Approximately

question 133

Multiple Choice

Holding everything else unchanged, if a nation's output grows at approximately 2.4% per year and its population doubles in 45 years, calculate the approximate rate of change in per capita real GDP.

• A) 0.8% per year
• B) 1.6% per year
• C) 2.4% per year
• D) 4% per year

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Definitions:

Cash Receipts

All cash inflows, representing money received by a business during a specific period.

Cash Disbursements

Money paid out by a business, including expenses, debt payments, and purchase of assets.

Cash Balance

The total amount of cash or cash equivalents available in a company's account at any given time.

Common Stock

Represents ownership shares in a corporation, granting shareholders voting rights and a share in the company's profits through dividends.