Suppose that a nation's GDP per capita grows at a constant 4 percent per year.You graph the nation's GDP per capita on a graph with a linear time scale on the x-axis,and a linear GDP per capita scale on the y-axis.What will the nation's GDP per capita look like on the graph?

Question

Quizplus · Accepted Answer

If the nation's GDP per capita grows at a constant 4 percent per year, it will result in a straight upward-sloping line on the graph. This is because the GDP per capita is increasing at a constant rate over time, resulting in a linear relationship between the two variables.

Suppose That a Nation's GDP Per Capita Grows at a Constant