### Question on Economic Indicators**Scenario:** If the value of the goods and services a country produces decreases while its population stays the same, which statement must be true?**Options:**- **A.** The country's rate of inflation has increased.- **B.** The country's per capita GDP has decreased.- **C.** The country's unemployment rate has decreased.- **D.** The country's total GDP has increased.**Analysis:** In this scenario, if the value of goods and services decreases and the population stays constant, it impacts per capita GDP calculations. Per capita GDP is calculated by dividing the total GDP by the population. With a decrease in total GDP and a stable population, the per capita GDP will decrease. Therefore, option B is the statement that must be true.

If the value of the goods and services a country produces decreases while its population stays the same, which statement must be true? O A. The country's rate of inflation has increased. B. The country's per capita GDP has decreased. C. The country's unemployment rate has decreased. D. The country's total GDP has increased.

If the value of the goods and services a country produces decreases while its population stays the same, which statement must be true? O A. The country's rate of inflation has increased. B. The country's per capita GDP has decreased. C. The country's unemployment rate has decreased. D. The country's total GDP has increased.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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