Which of the following is TRUE?
A) Real standards of living can increase without any positive economic growth.
B) Real growth rates fail to account for by price level changes.
C) Real and nominal values are not related.
D) Real standards of living decrease with positive economic growth.

Question

Quizplus · Accepted Answer

Real standards of living can increase without any positive economic growth if there are improvements in technology, efficiency or distribution of resources. This can result in an increase in productivity or a decrease in the cost of goods, a higher value of salary or wages, all without an increase in economic growth. B is false because real growth rates are adjusted for price level changes to give a more accurate reflection of economic growth. C is false because real and nominal values are related, with real values being adjusted for inflation to reflect the actual value of goods or services. D is false because positive economic growth leads to an increase in production, higher demand for goods and services, and more job opportunities, which increases the standard of living for people.

Which of the Following Is TRUE