Which of the following equations is correct?

Question

Quizplus · Accepted Answer

The rate of growth of per capita real GDP is calculated by subtracting the rate of growth of population from the rate of growth in real GDP. This makes sense since the increase in real GDP must be adjusted for the increase in population in order to determine how much each individual is benefiting from economic growth. Option B would result in an overestimation of per capita real GDP growth, while options C and D incorrectly assume that population growth has a direct impact on real GDP growth without accounting for its effect on per capita GDP.

Which of the Following Equations Is Correct