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What Best Explains Why Real GDP Per Person Is Always

Question 31

Multiple Choice

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

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