The _____in an economy whose aggregate real output is growing faster than the total population.

Question

Quizplus · Accepted Answer

Real GDP per capita is a measure of economic growth adjusted for population growth, so if real GDP is growing faster than population, real GDP per capita is rising. This means that each individual is enjoying a higher standard of living, with access to more goods and services per person. Option B is incorrect, as a rising real GDP per capita indicates an improving standard of living. Option C is incorrect, as a growing real GDP means national income is increasing, not decreasing. Option D is incorrect, as nominal GDP per capita is not adjusted for inflation and does not necessarily reflect changes in real economic growth.

The _____In an Economy Whose Aggregate Real Output Is Growing