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If total output is constant but the population is rising, what may macroeconomic analysis focus on?

Answer and explanation

Correct answer: The effect on per capita income and standard of living

Per capita income is calculated by dividing total income or output by population. If total output remains unchanged while population increases, output and income per person tend to fall, unless distribution or other income sources change. Therefore macroeconomic analysis examines possible effects on average living standards, consumption capacity, and welfare.

Related tags

Per-Capita-IncomeTotal-OutputPopulationGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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