If the real GDP per capita of a country increases over time, then it can be concluded that the:
A) real GDP of the country must be increasing.
B) population of the country must be increasing.
C) real GDP of the country must be increasing faster than the population.
D) population of the country must be increasing faster than the real GDP.

Question

Quizplus · Accepted Answer

Real GDP per capita is calculated by dividing the real GDP by the population. If real GDP per capita is increasing, it means that the real GDP is growing at a faster rate than the population, which is what option C states. Options A and B may or may not be true, and D is the opposite of what would cause an increase in real GDP per capita.

If the Real GDP Per Capita of a Country Increases