Author Question: Classical growth theory argues that when real GDP per person rises above the subsistence level A) ... (Read 114 times)

ghost! · **on:** Jun 29, 2018

Classical growth theory argues that when real GDP per person rises above the subsistence level

A) technological change slows down, stagnating the economy.
B) population growth increases, driving real GDP per person back to subsistence level.
C) people don't want to work as much, decreasing labor supply.
D) the economy enjoys a period of permanent growth.

Question 2

When calculating GDP, underground economic activity is

A) the production of goods and services in the home.
B) that portion of the time when we are enjoying leisure activities and not producing marketable goods.
C) the part of the economy purposely hidden.
D) an aspect of the quality of life, such as health and life expectancy.