If National Real GDP Grows at Twice the Rate of Population

question 42

Multiple Choice

If national real GDP grows at twice the rate of population growth,

• A) real per capita GDP growth will double each year.
• B) eventually there will be too much GDP.
• C) real per capita GDP will double each year.
• D) real per capita GDP will be reduced by half each year.

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Definitions:

Adjusting Entry

An accounting record made to update the book balances to reflect the true financial status before preparing financial statements.

Biweekly Salaries

A payment schedule for employees where wages are paid every two weeks, resulting in 26 pay periods in a year.

Adjusting Entry

An update to the books of accounts to allocate incomes and expenses to the appropriate accounting period.

Fiscal Period

Refers to any period used for accounting purposes, typically a year, which can either align with the calendar year or be a different 12-month period.