If Country A's real GDP is growing at 6 percent per year and Country B's real GDP is growing at 6 percent per year, then the standard of living is

Question

Quizplus · Accepted Answer

The standard of living is determined by real GDP per capita, which depends on both real GDP growth and population growth. If both countries have the same real GDP growth rate, the standard of living will change at the same rate only if their population growth rates are also the same.

If Country A's Real GDP Is Growing at 6 Percent