Choose the Statement That Is Incorrect

question 28

Multiple Choice

Choose the statement that is incorrect.

• A)The growth rate of real GDP per person can be calculated approximately by subtracting the population growth rate from the real GDP growth rate.
• B)Real GDP per person grows only if real GDP grows faster than the population grows.
• C)The standard of living depends on real GDP per person.
• D)Real GDP increases when the economy returns to full employment in an expansion phase of the business cycle.
• E)The return to full employment in an expansion phase of the business cycle is economic growth.

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Definitions:

Inelastic Demand

Describes a situation where the demand for a good or service changes little when its price changes.

Total Revenue

The total amount of money generated from the sale of goods or services.

Decrease

A reduction in quantity, size, intensity, or the number of something.

Equilibrium Price

The price at which the quantity of goods supplied equals the quantity of goods demanded, leading to market balance.