Suppose that real GDP increases by 5% while the population of a country increases by 7%. Then:
A) Output per person necessarily increases
B) Output per person necessarily decreases
C) Output per person necessarily remains unchanged
D) There is not enough information to determine what happens to output per person

Question

Quizplus · Accepted Answer

If real GDP increases by 5% while the population increases by 7%, it means that the total output of the country has increased but the population has grown faster than the output. Therefore, on average, output per person will decrease.

Suppose That Real GDP Increases by 5% While the Population