Suppose that in 2013,real GDP grew in Estonia by 3% and the population increased by 5%.Therefore,in 2013,Estonia experienced
A)economic growth,but not an increase in living standards.
B)economic growth and an increase in living standards.
C)no economic growth,but an increase in living standards.
D)no economic growth and no increase in living standards.

Question

Quizplus · Accepted Answer

While Estonia experienced economic growth of 3%, the fact that the population increased by 5% suggests that the growth in GDP was outpaced by the growth in population. This could result in a smaller amount of resources per person, which could lead to a lower increase in living standards. Therefore, while Estonia experienced economic growth, it is unlikely that there was an increase in living standards for the population as a whole.

Suppose That in 2013,real GDP Grew in Estonia by 3