Suppose that real GDP grew more in Country A than in Country B last year. Which of the following does this imply concerning productivity or standard of living?
A)Country A must have a higher standard of living than country B.
B)Country A's productivity must have grown faster than country B's.
C)Country A must have a higher real GDP than Country B.
D)Country A's productivity must have been higher only if the population in the two countries grew at the same rate.

Question

Quizplus · Accepted Answer

Real GDP growth does not necessarily imply higher productivity or standard of living unless population growth rates are considered. If both countries had the same population growth, then faster GDP growth in Country A would imply higher productivity growth.

Suppose That Real GDP Grew More in Country a Than