Given a constant rate of growth of real GDP, what would lead to an increasing real GDP per capita?
A)a rate of population growth that is less than the rate of growth of real GDP
B)a rate of population growth that is greater than the rate of growth of real GDP
C)an increase in the size of the labor force
D)an increase in the capital stock

Question

Given a constant rate of growth of real GDP, what would lead to an increasing real GDP per capita?
A)​a rate of population growth that is less than the rate of growth of real GDP
B)​a rate of population growth that is greater than the rate of growth of real GDP
C)​an increase in the size of the labor force
D)​an increase in the capital stock

Quizplus · Accepted Answer

Real GDP per capita increases when the real GDP grows at a rate faster than the population growth rate, as it indicates that the economy is producing more goods and services per person.

Given a Constant Rate of Growth of Real GDP, What