Suppose that real GDP grew more in El Dorado than in Atlantis last year. What does this imply concerning productivity or standard of living?
A) El Dorado must have a higher standard of living than Atlantis.
B) El Dorado's productivity must have grown faster than Atlantis's.
C) El Dorado must have a higher real GDP than Atlantis.
D) El Dorado's productivity must have been higher only if the population in the two countries grew at the same rate.

Question

Quizplus · Accepted Answer

If the population growth rates are the same, then faster GDP growth in El Dorado implies faster productivity growth. However, without knowing population growth rates, we cannot conclude about productivity or standard of living directly.

Suppose That Real GDP Grew More in El Dorado Than