Assume the population growth rate is 2 percent and the real GDP growth rate is 5 percent.The change in standard of living,as measured by the growth rate in real GDP per person,is

Question

Quizplus · Accepted Answer

The change in standard of living, as measured by the growth rate in real GDP per person, can be calculated as: 
Real GDP growth rate - population growth rate = 5% - 2% = 3%. 
Therefore, the change in standard of living is 3%.

Assume the Population Growth Rate Is 2 Percent and the Real