An assumption of classical growth theory is that when ________ the population growth rate ________.
A) real GDP per person exceeds the subsistence level; increases
B) people become more skilled; decreases
C) the real wage rate falls; increases
D) saving declines; decreases
Question 2
If you have 5,000 in wealth and the price level decreases by 20 percent, then
A) the 5,000 will buy fewer goods and services.
B) the 5,000 will buy more goods and services.
C) the real value of the 5,000 decreases.
D) the real value of the 5,000 remains constant.
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