Last Year Panglossia Had Real GDP of 27

question 46

Multiple Choice

Last year Panglossia had real GDP of 27.0 billion. This year it had real GDP of 31.5 billion. Which of the following changes in population is consistent with a 5 percent growth rate of real GDP per person over the last year?

• A)The population decreased from 88 million to 84 million.
• B)The population decreased from 75 million to 73 million.
• C)The population increased from 45 million to 50 million.
• D)The population increased from 60 million to 62 million.

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Definitions:

Variable Costs

Expenses that vary in direct proportion to changes in levels of production or sales activity, such as raw materials and direct labor costs.

Net Loss

The amount by which expenses exceed revenues.

Variable Costs

Expenses that vary in relation to the quantity of products or services a company generates.

Fixed Costs

Financial obligations that are stable irrespective of the business's production or sales figures, such as rental payments, salary bills, and insurance.