Suppose that in 2016,real GDP grew in Estonia by 3% and the population increased by 5%.Therefore,in 2016,Estonia experienced
A)economic growth,but not an increase in living standards.
B)economic growth and an increase in living standards.
C)no economic growth,but an increase in living standards.
D)no economic growth and no increase in living standards.

Question

Quizplus · Accepted Answer

Economic growth is measured by an increase in real GDP, which did happen in Estonia in 2016. However, an increase in population without a corresponding increase in real GDP per capita implies that the increase in output was not distributed evenly among the population. Therefore, while there was economic growth, there was not necessarily an increase in living standards for all citizens.

Suppose That in 2016,real GDP Grew in Estonia by 3