If Real GDP Is Increasing More Rapidly Than the Population

question 87

Multiple Choice

If real GDP is increasing more rapidly than the population, then:

• A)​interest rates must be falling.
• B)​the economy must be experiencing inflation.
• C)​per capita real GDP will be increasing.
• D)​per capita real GDP will be decreasing.

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Definitions:

Low-Income

Referring to individuals or families that earn significantly less than the average income level, often qualifying for various forms of government assistance.

Positive Economics

Real-world economics that focuses on describing, analyzing, and explaining economic phenomena as it actually is, not as it should be.

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to isolate the effect of one economic variable from the influence of others.

Normative Economics

A branch of economics that deals with value judgments about what the economy should be like, focusing on what ought to be rather than what is.