Real GDP per capitaMultiple Choicecannot grow more rapidly than real GDP.cannot grow more slowly than real GDP.necessarily grows more rapidly than real GDP.can grow either more slowly or more rapidly than real GDP.
Question
Real GDP per capitaMultiple Choicecannot grow more rapidly than real GDP.cannot grow more slowly than real GDP.necessarily grows more rapidly than real GDP.can grow either more slowly or more rapidly than real GDP.
Solution
The correct answer is: can grow either more slowly or more rapidly than real GDP.
Here's why:
Real GDP per capita is the economic output of a country adjusted for price changes and divided by the total population. It's a measure of the standard of living in a country.
Real GDP, on the other hand, is the economic output of a country adjusted for price changes. It doesn't take into account population size.
Therefore, if a country's population is growing faster than its economy, real GDP per capita could grow more slowly than real GDP. Conversely, if a country's economy is growing faster than its population, real GDP per capita could grow more rapidly than real GDP.
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