If population growth is greater than the growth of real output
A) real per capita Gross Domestic Product (GDP) growth will be less than the growth of real Gross Domestic Product (GDP).
B) the production possibilities curve is shifting to the left.
C) real per capita Gross Domestic Product (GDP) growth will be greater than the growth of real Gross Domestic Product (GDP).
D) real per capita Gross Domestic Product (GDP) and real Gross Domestic Product (GDP) will be growing at the same rate.

Question

Quizplus · Accepted Answer

When population growth is greater than the growth of real output, it means that the economy is producing less output per person, leading to lower real per capita Gross Domestic Product (GDP) growth. This is because there are more people to share the same amount of output, which lowers the standard of living. However, real Gross Domestic Product (GDP) can still grow if the quantity of inputs, including labor, capital, and technology, increases. Therefore, real per capita GDP growth will be less than the growth of real GDP.

If Population Growth Is Greater Than the Growth of Real