How does the growth rate of real GDP contribute to an improved standard of living?
What will be an ideal response?
A benefit of long-term economic growth is the increased consumption of goods and services that is made possible. Growth of real GDP also allows more resources to be devoted to areas such as health care, research, and environmental protection.
You might also like to view...
Which of the following describes the behavior of politicians implementing fiscal policy?
A. They spend in bad times because they can, and they spend in good times because they have to. B. They spend in bad times because they have to, and they spend in good times because they can. C. They save in bad times because they have to, and they save in good times because they can. D. They save in bad times because they can, and they save in good times because they have to.
The price elasticity of the supply of teenage labor services is approximately 1.36. Suppose the minimum wage rises from $7.25 per hour to $8.75. Using the midpoint formula, what is the approximate change in the quantity of teenage labor supplied?
A) 7.3 percent B) 14.4 percent C) 25.5 percent D) There is insufficient information to answer the question.