Author Question: If the population growth rate is 2 percent, real GDP per person will double in 7 years if real GDP ... (Read 102 times)

crazycityslicker · **on:** Jun 29, 2018

If the population growth rate is 2 percent, real GDP per person will double in 7 years if real GDP grows by ______ percent per year.

A. 7
B. 10
C. 12
D. 14

Question 2

Discuss the theory of the ability-to-pay principle.

What will be an ideal response?

spencer.martell · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

C For real GDP per person to double in 7 years, the growth rate of real GDP per person must be 10 percent. If the population growth rate is 2 percent, then real GDP must grow at 12 per-cent.

Answer to Question 2

It is a theory of taxation which holds that citizens should bear tax burdens in line with their ability to pay taxes.