If real GDP is increasing more rapidly than population,
A) population must be declining.
B) the country will have to export more than it imports.
C) the general level of prices must be increasing.
D) per capita real GDP will be increasing.

Question

Quizplus · Accepted Answer

Per capita real GDP will be increasing because real GDP, adjusted for inflation, is increasing at a faster rate than the population. This means that there is more output per person, making the average person more productive and increasing their standard of living.  Options A and B are incorrect as they are not related to the given statement, and option C does not necessarily hold true as an increase in real GDP does not always lead to an increase in the general level of prices.

If Real GDP Is Increasing More Rapidly Than Population