In the Neoclassical Growth Model,decreases in the Population,other Things Being

question 47

Multiple Choice

In the Neoclassical growth model,decreases in the population,other things being equal,would eventually result in

• A)decreasing GDP and falling living standards.
• B)decreasing GDP and increasing living standards.
• C)increasing GDP and falling living standards.
• D)increasing GDP and increasing living standards.
• E)increasing savings and increasing living standards.

---

Definitions:

Wage Rate

The amount of compensation a worker receives per unit of time (e.g., per hour or year) for their labor.

Real Minimum Wage

The lowest legal hourly wage, adjusted for inflation, that employers can pay their workers.

Purchasing Power

The ability of an individual or group to buy goods and services with a given unit of currency or resources.

Real Wages

Wages adjusted for inflation, reflecting the actual purchasing power of income earned from work.