In Polynomia, real GDP increased by 8% and the population increased by 3% in 2016. In 2016, Polynomia 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) an economic decline.

Question

Quizplus · Accepted Answer

When real GDP increases more than population growth, it means that there is an increase in output per capita, which is an indication of economic growth and an increase in living standards. Therefore, Polynomia experienced economic growth and an increase in living standards in 2016.

In Polynomia, Real GDP Increased by 8% and the Population