Given a Constant Rate of Growth of Real GDP, What

question 72

Multiple Choice

Given a constant rate of growth of real GDP, what would lead to an increasing 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 increase in the capital stock

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Definitions:

Periodic Interest Rate

This is the interest rate charged or earned over a particular period of time, often calculated based on the annual interest rate.

Payment Interval

The frequency at which payments are made, such as monthly, quarterly, or annually.

Compounded Annually

Interest on an investment or loan calculated once a year, taking into account the interest that has accrued in the previous period.

Current Economic Value

An estimation of the present worth of an asset or company based on its capacity to generate income in the current economic environment.