Suppose that the real Gross Domestic Product (GDP) growth rate for a country was 3 percent and the population growth rate was 3 percent. What would the per capital real Gross Domestic Product (GDP) growth rate be for this country?

Question

Quizplus · Accepted Answer

Per capita real GDP growth rate would be 0 percent. This is because the real GDP growth rate and the population growth rate cancel each other out when calculating per capita GDP growth rate. Therefore, the country's economic growth is not keeping up with the population growth.

Suppose That the Real Gross Domestic Product (GDP) Growth Rate