If a country's real GDP is growing at 5 percent and the population is also growing at 5 percent, its:
a. per capita real GDP grows at an increasing rate.
b. per capita real GDP grows at a constant rate.
c. population growth will eventually exceed real GDP.
d. per capita real GDP decreases at a constant rate.
e. per capita real GDP does not change.
Question 2
If both the price level and nominal incomes change by the same percentage:
a. real GDP will remain constant.
b. the aggregate supply curve will be upward-sloping.
c. profit margins will change in real terms.
d. the long-run aggregate supply curve will be horizontal.
e. both a and d.
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