When GDP per capita goes up by 10 percent:
A) everyone's income goes up by 10 percent.
B) only the most wealthy peoples' incomes will go up by 10 percent.
C) no one's income goes up by 10 percent.
D) the distribution of the increase in income may vary.

Question

Quizplus · Accepted Answer

The increase in GDP per capita does not necessarily mean that everyone's income will go up by the same 10 percent. The distribution of the increase may vary depending on factors such as income inequality, labor force participation, and the types of industries that are experiencing growth. Some individuals may see a larger increase in their income, while others may not see any increase at all.

When GDP Per Capita Goes Up by 10 Percent