SECOND ESSAY QUESTION (50 points)ANSWER ONE OF THE FOLLOWING…
SECOND ESSAY QUESTION (50 points)ANSWER ONE OF THE FOLLOWING TWO QUESTIONS:C. Evaluate the following statement: “Continual population growth, with no other change affecting economic growth, leads to continual growth in real GDP, but a continual drop in living standards.” Explain using economic concepts why you believe the statement to be true or false. ORD. The General Manager (GM) of a car dealership is working on a three year business plan. The GM expects inflation to rise over the next three years. How will higher inflation affect the number of vehicles the dealership can sell? Based on the GM’s inflation expectation what type of loan should the dealership arrange with its bank in order finance its inventory of automobiles? NOTE: Use economic concepts to explain the answer.