Initially Country A has a greater GDP per capita than Country B,but the growth rate in Country A is only 1 percent,while it is 2 percent in Country B.If these growth rates continue forever,which of the following is correct?

Question

Quizplus · Accepted Answer

Given the constant growth rates, Country B's GDP per capita growing at 2 percent will eventually surpass Country A's GDP per capita growing at 1 percent, due to the effect of compound growth over time.

Initially Country a Has a Greater GDP Per Capita Than