Author Question: What best explains why real GDP per person is always driven to the subsistence level in the ... (Read 43 times)

lak · **on:** Jun 29, 2018

What best explains why real GDP per person is always driven to the subsistence level in the classical model?

A) Population growth occurs, increasing the supply of labor.
B) Population growth occurs, shifting the labor supply curve leftward.
C) Growth is not possible so the demand for labor never changes.
D) Investment in capital decreases labor demand, decreasing the demand for labor.

Question 2

The Consumer Price Index is a measure of the average of the prices paid by ________ for a fixed basket of consumer goods and services.

A) urban consumers
B) all consumers
C) urban wage earners and clerical workers
D) consumers living in cities with a population greater than 100,000