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:

Conservation Skills

Cognitive abilities that enable a child to understand that quantity or amount does not change when its form or appearance is altered, a concept developed by Jean Piaget.

Preoperational Thought

A stage in Piaget's theory of cognitive development where children (ages 2-7) begin to engage in symbolic play and struggle with logic and understanding others' perspectives.

Intuitive Reasoning

The process of making decisions on the basis of what feels right or what is instinctively believed to be true without logical reasoning.

Symbolic Thought

The ability to use symbols, like words or images, to represent objects, actions, or ideas not physically present.