If a country's real GDP is growing at 5 percent and the population is also growing at 5 percent, its:
A) per capita real GDP grows at an increasing rate.
B) per capita real GDP grows at a constant rate.
C) population growth will eventually exceed real GDP.
D) per capita real GDP decreases at a constant rate.
E) per capita real GDP does not change.

Question

Quizplus · Accepted Answer

If the real GDP and population are growing at the same rate, there is no change in per capita real GDP. It stays constant.

If a Country's Real GDP Is Growing at 5 Percent