Over the past decade, a nation's real Gross Domestic Product (GDP) grew at a constant rate of 9 percent per year while its population grew 8 percent annually. Forecasters predict that during the coming decade, real GDP will continue to grow 10 percent annually, but the population growth rate is expected to drop to 7 percent annually. If the forecasters are correct, which of the following will be TRUE?
A. The annual rate of growth of per capita real GDP will increase from 1 percent to 3 percent.
B. The annual rate of growth of per capita real GDP will decline from 2 percent to 1 percent.
C. The annual rate of growth of per capita real GDP will increase from 1 percent to 8 percent.
D. The annual rate of growth of per capita real GDP will decline from 3 percent to 2 percent.
Answer: A
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Marginal revenue measures the change in
a. output generated by a change in price b. price generated by a change in output c. output generated by hiring one more factor of production d. total revenue generated by a change in price e. total revenue generated by a change in output
Medicare is an example of a third-party payment for medical services that
A) causes providers to supply less of medical services than they would without the payment. B) causes buyers to consume more of medical services than they would without the payment. C) does not cause any change in the equilibrium position for medical services which existed without the subsidy. D) causes the price of medical services to rise for the consumer once the payment is provided.