What Best Explains Why Real GDP Per Person Is Always

question 31

Multiple Choice

What best explains why real GDP per person is always driven to the subsistence level in the classical model?

• A) Population growth occurs, increasing the supply of labor.
• B) Growth is not possible so the demand for labor never changes.
• C) Investment in capital decreases labor demand, decreasing the demand for labor.
• D) Population growth occurs, shifting the labor supply curve leftward.

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Definitions:

NCEs

Normal Curve Equivalents, a type of standardized score used in educational assessments to compare student performance across different age groups and grades.

Bell-shaped Curve

A graphical depiction of a normal distribution of data, where the bulk of data points lie near the mean, creating a symmetrical bell shape.

Percentiles

Statistical values that represent the position of a score in relation to other scores in a distribution, indicating the percentage of scores that lie below it.

Z-scores

Standardized scores that indicate how many standard deviations an element is from the mean of a dataset, used in comparing scores from different distributions.