If the Level of Aggregate Real Gross Domestic Product (GDP)

question 111

Multiple Choice

If the level of aggregate real Gross Domestic Product (GDP) remains constant, a reduction in the population

• A) directly increases per capita real GDP.
• B) directly reduces per capita real GDP.
• C) indirectly reduces per capita real GDP.
• D) has no effect on real per capita real GDP.

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Definitions:

Supply

The total amount of a good or service that is available for purchase at various prices in a given market.

Japanese Yen

The official currency of Japan, used as a medium of exchange and a standard of value within the country.

Upsloping

Describes a curve or line on a graph that shows an increase in value or quantity as it moves from left to right.

Flexible Exchange Market

Refers to a foreign exchange market where exchange rates are allowed to move due to market forces without intervention by country governments.