If real GDP is increasing more rapidly than the population,what can we conclude?

Question

Quizplus · Accepted Answer

When real GDP is increasing more rapidly than the population, it means that there is an increase in economic output per person, also known as per capita real GDP. This is a sign of economic growth and an improvement in the standard of living for the population. Option A is incorrect because inflation does not necessarily have to occur in a growing economy. Option B is incorrect because per capita real GDP would actually be increasing. Option C is incorrect because interest rates are not necessarily correlated to changes in real GDP or population growth.

If Real GDP Is Increasing More Rapidly Than the Population,what