If the level of aggregate real Gross Domestic Product (GDP) remains constant, a reduction in the population

Question

Quizplus · Accepted Answer

Per capita real GDP is the GDP per person. If the level of aggregate real GDP remains constant and the population reduces, then per capita real GDP will increase because the same level of output is being spread across a smaller population. Therefore, choice A is correct, as a reduction in the population directly increases per capita real GDP.

If the Level of Aggregate Real Gross Domestic Product (GDP)