If Real GDP Grows at a Rate of 6 Per

question 92

Multiple Choice

If real GDP grows at a rate of 6 per cent and population grows at a rate of 2 per cent,then real GDP per person grows at a rate of

• A)8 per cent.
• B)0.5 per cent.
• C)4 per cent.
• D)2 per cent.
• E)-3 per cent.

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Definitions:

Tax

Mandatory financial contributions imposed by a government on individuals, corporations, or goods to fund public expenditures.

Tax Burden

The measure of the total amount of taxes imposed by government on individuals, corporations, goods, and services, affecting the income and purchasing power of taxpayers.

Buyer

An individual or entity that purchases goods or services for personal use or for the purpose of resale.

Tax Revenue

Income that is gained by governments through taxation, which is then used to fund public services and government commitments.