If real GDP is growing more slowly than the rate of population growth then, ceteris paribus, the average standard of living is increasing.

Question

Quizplus · Accepted Answer

If real GDP growth is slower than population growth, it means the economy's total output is not increasing fast enough to keep up with the number of people, leading to a decrease in the average amount of goods and services available per person, which typically indicates a declining standard of living.

If Real GDP Is Growing More Slowly Than the Rate