Growth in GDP per capita will be achieved when
A)Labor demand decreases substantially while labor supply increases slightly.
B)GDP grows faster than the population.
C)Investment is equal to saving.

Question

Quizplus · Accepted Answer

GDP per capita is a measure of economic output per person. It can only increase if the economy grows faster than the population. Option A would result in lower output per person due to decreased labor demand. Option C is necessary for long-term economic stability but does not necessarily lead to GDP per capita growth.

Growth in GDP Per Capita Will Be Achieved When