Output Per Person Rises When

question 83

Multiple Choice

Output per person rises when

• A) the population increases faster than real GDP
• B) real GDP rises faster than the number of employed workers
• C) real GDP increases at the same rate as the population
• D) real GDP rises slower than the population
• E) real GDP rises faster than the population

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Definitions:

GDP

Gross Domestic Product, a measure of the economic performance of a country, calculating the total value of all goods and services produced over a specific time period.

Gross Investment

The total amount spent on purchases of new capital assets and replacement of depreciated assets within a specified period.

Net Investment

The total spending on new capital minus the replacement of depreciated capital, indicating the actual addition to the capital stock in an economy.

GDP Deflator

An economic metric that converts the gross domestic product (GDP) from current market prices into constant dollar terms in order to measure the real growth of an economy, excluding the effect of inflation.