Nation A's real GDP was $520 billion in Year 1 and $550 billion in Year 2. Its population was 150 million in Year 1 and 155 million in Year 2. On the other hand, Nation B's real GDP was $200 billion in
Year 1 and $210 billion in Year 2; and its population was 53 million in Year 1 and 55 million in Year 2.
Which of the following statements is true?

Question

Quizplus · Accepted Answer

Nation A's GDP per capita in Year 1 is $520 billion / 150 million = $3,466.67, and in Year 2 it is $550 billion / 155 million = $3,548.39, showing an increase. Nation B's GDP per capita in Year 1 is $200 billion / 53 million = $3,773.58, and in Year 2 it is $210 billion / 55 million = $3,818.18, also showing an increase. Therefore, both nations experienced an increase in GDP per capita.

Nation A's Real GDP Was $520 Billion in Year 1