When Computing Economic Growth,changes in Nominal Gross Domestic Product (GDP)must

question 77

Multiple Choice

When computing economic growth,changes in nominal gross domestic product (GDP) must be adjusted to reflect population growth because:

• A) holding real GDP constant, an increase in the population actually lowers average standards of living.
• B) an increase in population will tend to reduce nominal GDP.
• C) changes in population tend to have no effect on standards of living.
• D) holding real GDP constant, an increase in the population actually raises average standards of living.
• E) an increase in the population will tend to decrease average prices.

---

Definitions:

Balance Sheet

A financial overview presenting a business's total assets, current liabilities, and the equity portion of its shareholders on a designated day.

Assets

Resources owned by a company that have economic value and can provide future benefits, including cash, inventory, and equipment.

Equity

The value of ownership interest in a company, represented by the amount of assets minus liabilities.

Adjusting Entries

Entries made in accounting records at the end of an accounting period to update the balances of accounts in the preparation of financial statements.