Given a Constant Rate of Growth of Real GDP, What

question 90

Multiple Choice

Given a constant rate of growth of real GDP, what would cause a fall in 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 overall decrease in population

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Definitions:

Growth Rate

The rate at which a company's sales, earnings, dividends, or other key metrics increase over a specified period of time.

Transaction Costs

Expenses incurred when buying or selling securities, including broker's fees, commissions, and taxes, which can affect the overall profitability of an investment.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the market capitalization remains the same.

Pre-split Price

The pre-split price is the value of a stock before it undergoes a split, affecting the total number of shares in circulation but not the company's market capitalization.