Suppose that over the past ten years productivity grew faster in Oceania than in Freedonia and the population of both countries was unchanged. Which of the following can we conclude?

Question

Quizplus · Accepted Answer

Faster productivity growth typically leads to faster growth in real GDP per person, which in turn suggests that real GDP per person grew faster in Oceania than in Freedonia. However, we cannot determine whether Oceania has a higher real GDP per person or a higher standard of living based on this information alone, and there is no mention of capital stock.

Suppose That Over the Past Ten Years Productivity Grew Faster