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 proportional 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

A constant growth rate of 4 percent per year in GDP per capita means the growth is exponential. On a graph with a linear time scale and a proportional GDP scale, exponential growth appears as a curve that slopes upward with an increasing slope.

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