If a Country Experiences a Real GDP Growth Rate of 1

question 166

Multiple Choice

If a country experiences a real GDP growth rate of 1 percent and population growth of 2 percent,then the growth rate of real GDP per person is

• A)3 percent.
• B)2 percent.
• C)1 percent.
• D)-1 percent.
• E)0 percent.

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, used in discounting to determine investment value.

Lease Agreement

A contract between two parties where one party agrees to rent property owned by another party, often specifying terms and conditions for use and payment.

Straight-Line Method

A method of depreciation that allocates an equal expense amount to each year of the asset's useful life.

Effective-Interest Method

A way of calculating the amortized cost of a bond and the amount of interest expense over time.