According to Figure 5.1 from 1990 to 2000 the standard of living in this hypothetical economy:
A. Improved because the population increase in the 1970s and 1980s caused the labor force to increase.
B. Decreased because the level of inflation caused the value of output to fall.
C. Decreased because the population growth exceeded the output growth.
D. Stayed about the same because real GDP was fairly constant.
Answer:C
According to Figure 5.1 from 1990 to 2000 the standard of living in this hypothetical economy:
A. Improved because the population increase in the 1970s and 1980s caused the labor force to increase. B. Decreased because the level of inflation caused the value of output to fall. C. Decreased because the population growth exceeded the output growth. D. Stayed about the same because real GDP was fairly constant.