Growth in GDP per capita is only possible if growth in _______ exceeds growth in ______.

Question

Quizplus · Accepted Answer

GDP per capita is calculated by dividing the total output of an economy by the number of people living in it. Therefore, if the population of an economy grows at a faster rate than the output, the GDP per capita will decrease. On the other hand, if the output grows at a faster rate than the population, GDP per capita will increase. Prices and employment levels can also impact GDP per capita, but they are not the primary drivers of growth in this measure. Therefore, option D is the best choice as it states that growth in output must exceed growth in population for GDP per capita to increase.

Growth in GDP Per Capita Is Only Possible If Growth