What Best Explains Why Real GDP Per Person Is Always

question 285

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

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Definitions:

Manufacturing Cycle Efficiency

A measure of the effectiveness of a manufacturing process, calculated by dividing the value-added production time by the total cycle time.

Fill Orders

The process of completing customer requests for goods or services in accordance with purchase agreements or specifications.

Throughput Time

Throughput Time, also known as cycle time, is the total time taken from the beginning to the end of a production process, including processing, inspection, and transportation times.

Fill Orders

The process of completing customer orders by preparing and delivering the requested products or services.