Given a Constant Rate of Growth of Real GDP, What

question 69

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
• E)none of the above

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Definitions:

Wage

The price paid for the use or services of labor per unit of time (per hour, per day, and so on).

Salary Workers

Individuals who receive a fixed regular payment, often monthly, from their employer, regardless of the number of hours worked.

Monopsonist

An economic situation where there is only one buyer in the market, giving the buyer substantial power over prices and terms with suppliers.