If people began to retire at a later age and there was an increase in the capital stock, real GDP growth would ____ and real GDP growth per capita would ____.
A)increase; increase.
B)increase; be indeterminate.
C)decrease; decrease.
D)decrease; be indeterminate

Question

If people began to retire at a later age and there was an increase in the capital stock, real GDP growth would ____ and real GDP growth per capita would ____.
A)​increase; increase.
B)​increase; be indeterminate.
C)​decrease; decrease.
D)​decrease; be indeterminate

Quizplus · Accepted Answer

When people retire at a later age, they continue to contribute to the economy and increase the capital stock, which results in an increase in real GDP growth. Additionally, if there is an increase in the capital stock, it leads to an increase in productivity and efficiency, which contributes to real GDP growth per capita. Therefore, both real GDP growth and real GDP growth per capita would increase.

If People Began to Retire at a Later Age and There