Suppose a country's real GDP increases. At the same time, its population also increases. What happens to its standard of living?

Question

Quizplus · Accepted Answer

If a country's real GDP increases and its population also increases, its standard of living could still rise if the population growth is smaller than output growth. This means that there is more output per capita, allowing for an increase in the standard of living. However, if population growth exceeds output growth, the standard of living could decline due to a decrease in output per capita. Therefore, the best choice is D.

Suppose a Country's Real GDP Increases