If an economy's population grows at 3 percent and real GDP grows at 2 percent, then:
A) per capita real GDP is declining.
B) the economy's standard of living is increasing.
C) per capita real GDP is negative.
D) per capita real GDP is growing.
E) the economy is experiencing unemployment.

Question

Quizplus · Accepted Answer

Per capita real GDP is calculated by dividing real GDP by the population. If the population is growing faster than real GDP, then per capita real GDP is declining.

If an Economy's Population Grows at 3 Percent and Real