If a nation's real GDP increases from 100 billion to 106 billion and its population jumps from 200 million to 212 million, its real GDP per capita will
A) remain constant.
B) fall by 6 percent.
C) rise by 6 percent.
D) fall by 12 percent.

Question

Quizplus · Accepted Answer

The real GDP per capita remains constant because the percentage increase in real GDP (6%) is the same as the percentage increase in population (6%), leaving the real GDP per capita unchanged.

If a Nation's Real GDP Increases from 100 Billion to 106