Given a Constant Rate of Growth of Real GDP, What

question 90

Multiple Choice

Given a constant rate of growth of real GDP, what would cause a fall in real GDP per capita?

• A)​a rate of population growth that is less than the rate of growth of real GDP
• B)​a rate of population growth that is greater than the rate of growth of real GDP
• C)​an increase in the size of the labor force
• D)​an overall decrease in population

---

Definitions:

Opportunity Cost

The expense incurred by not selecting the second best choice while making a decision or opting among alternatives.

Debt Default

The failure to meet the legal obligations of a loan, such as not making scheduled payments on time.

U.S. Federal Budget

The government's estimate of revenue and spending for a fiscal year that is proposed by the President and approved by Congress.

Federal Deficits

The shortfall where the government's expenditures exceed its revenues within a specific fiscal year.