If national real GDP grows at twice the rate of population growth,
A) c and e.
B) eventually there will be too much GDP.
C) per real capita GDP will double each year.
D) per real capita GDP will be reduced by half each year.
E) per real capita GDP growth will double each year.

Question

Quizplus · Accepted Answer

The statement "national real GDP grows at twice the rate of population growth" indicates that the economy is growing more quickly than the population is increasing. This means that there are more goods and services being produced per person each year, which leads to an increase in per capita GDP. Specifically, if GDP is growing at twice the rate of population growth, then per capita GDP growth will double. Therefore, the correct answer is (E) per real capita GDP growth will double each year.

If National Real GDP Grows at Twice the Rate of Population