Over the course of 10 years,a country's population doubles.During this time,its GDP increases from $10 trillion to $12 trillion.Pete,who lives in this country and buys the same goods and services every year,finds that he is still paying the same price for them.This implies that ________.
A) productivity in this country has decreased
B) purchasing power parity in this country has decreased
C) the country's workforce has more than doubled
D) Both A and B

Question

Quizplus · Accepted Answer

The population doubling without a corresponding doubling in GDP suggests that per capita GDP has decreased, implying lower productivity per person. Purchasing power parity not changing is not directly implied by the given information, and there's no information on the workforce's size relative to population growth.

Over the Course of 10 Years,a Country's Population Doubles