A country that experiences population growth (holding K constant) will experience growth in real GDP per capita.

Question

Quizplus · Accepted Answer

Population growth may cause an increase in real GDP, but it does not necessarily lead to an increase in real GDP per capita. Real GDP per capita is calculated by dividing real GDP by the population. If the population grows faster than real GDP, then the real GDP per capita will actually decrease. In order for real GDP per capita to increase, real GDP must grow at a faster rate than population growth.

A Country That Experiences Population Growth (Holding K Constant) Will