Real GDP Per Person Did Not Remain at the Subsistence

question 104

Multiple Choice

Real GDP per person did not remain at the subsistence level, as predicted by classical growth theory, because as GDP per person increased,

• A) birth rates remained constant and death rates fell.
• B) birth rates eventually fell.
• C) technological advances were able to outpace the effects of the continued and increasingly high birth rate.
• D) the total level of real GDP decreased.
• E) death rates eventually increased.

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Definitions:

Debt Worthy

A term indicating an individual or organization's capability and reliability in repaying borrowed money, often assessed by creditworthiness.

Expansion Capital

Refers to the funds provided to mature companies looking to expand operations, enter new markets, or acquire assets without changing control of the business.

Long-Term Borrowings

Loans or debt obligations with repayment schedules extending beyond one year, used to finance more permanent or significant investments.

Working Capital

The measure of a company's short-term financial health and operational efficiency, calculated as current assets minus current liabilities.