Over a 10-year period, country A has real GDP and population growth rates of 5% and 7%, respectively; country B has real GDP and population growth rates of 3% and 1%, respectively. All other things unchanged, per capita real GDP has increased
A) more in country A.
B) more in country B.
C) about the same in both countries.
D) in neither country.

Question

Quizplus · Accepted Answer

Per capita real GDP is calculated by dividing real GDP by the population. In country A, the population grows faster than GDP, leading to a decrease in per capita real GDP. In country B, GDP grows faster than the population, resulting in an increase in per capita real GDP.

Over a 10-Year Period, Country a Has Real GDP and Population