What is the relationship between the growth rate of real GDP and ...

[dollx]

What is the relationship between the growth rate of real GDP and the growth rate of real GDP per person?
 
  What will be an ideal response?

Question 2

If the Fed is using policy to combat inflation, what is likely to happen in the foreign exchange market and to the foreign exchange value of the dollar?
 
  A) The demand for the dollar will increase and the foreign exchange value of the dollar will rise.
  B) The demand for the dollar will decrease and the foreign exchange value of the dollar will fall.
  C) The demand for the dollar will decrease and the foreign exchange value of the dollar will rise.
  D) The demand for the dollar will increase and the foreign exchange value of the dollar will fall.

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Answer to Question 1

The growth rate of real GDP tells how rapidly the total economy is expanding while the growth rate of real GDP per person tells how the standard of living is changing. The growth rate of real GDP per person approximately equals the growth rate of real GDP minus the population growth rate.

Answer to Question 2

A