Suppose that real GDP grew more in Country A than in Country B last year.What 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

If the population growth rate is the same in both countries, then faster GDP growth in Country A implies higher productivity growth.

Suppose That Real GDP Grew More in Country a Than