In only one of the following situations is a nation's standard of living certain to increase.Which one?
A) Real GDP rises faster than population.
B) Real GDP rises faster than the price level.
C) Real GDP rises.
D) Real GDP rises faster than the number of people employed.
E) Real GDP rises faster than the number of people unemployed.

Question

Quizplus · Accepted Answer

When real GDP rises faster than population, the nation's standard of living is certain to increase because it means there's an increase in the average amount of goods and services each person can enjoy. This is measured by real GDP per capita, and a growth in this indicator is an indication of economic development.

In Only One of the Following Situations Is a Nation's