When Computing Economic Growth,changes in Nominal Gross Domestic Product (GDP)must

question 77

Multiple Choice

When computing economic growth,changes in nominal gross domestic product (GDP) must be adjusted to reflect population growth because:

• A) holding real GDP constant, an increase in the population actually lowers average standards of living.
• B) an increase in population will tend to reduce nominal GDP.
• C) changes in population tend to have no effect on standards of living.
• D) holding real GDP constant, an increase in the population actually raises average standards of living.
• E) an increase in the population will tend to decrease average prices.

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