Suppose that over the past 25 years a country's nominal GDP grew to three times its former size. In the meantime, population grew 50 percent and prices rose 100 percent. What happened to real GDP per person?

Question

Quizplus · Accepted Answer

Real GDP per person did not change because the nominal GDP tripled, but the price level also doubled, which means real GDP only increased by 50%. Since the population also increased by 50%, the real GDP per person remained the same.

Suppose That Over the Past 25 Years a Country's Nominal