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:

Capital

Wealth in the form of money or other assets owned or used by a person or organization for a particular purpose such as investment in productive projects.

Foreign Exchange Reserve

Holdings of foreign currencies and precious metals by a country's central bank or monetary authority, used to back its liabilities and influence monetary policy.

Banks

Institutions licensed to receive deposits, offer loans, and provide various financial services to individuals and businesses.

Economic Problems

Issues affecting an economy, including inflation, unemployment, and poverty.