In 2009, the Imaginary Nation of Platland Had a Population

question 380

Multiple Choice

In 2009, the imaginary nation of Platland had a population of 10,000 and real GDP of 42,000,000. During the year its real GDP grew by about 1.98%. Which of the following sets of growth rates is consistent with this growth in real GDP?

• A)1% population growth and 3% real GDP growth
• B)3% population growth and 1% real GDP growth
• C)3% population growth and 6% real GDP growth
• D)6% population growth and 3% real GDP growth

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Definitions:

Income Increases

A rise in the amount of money received, especially on a regular basis, by an individual or group.

Progressive Tax

A tax system in which the tax rate increases as the taxable amount increases, thereby imposing a higher percentage rate on higher-income earners.

High-Income

Earning a substantial amount of money, typically above the median income level in a given region or country.

Low-Income

Referring to individuals or families whose earnings are significantly lower than the average, often quantified by government standards.