Given a constant rate of growth of real GDP, what would cause a fall in real GDP per capita?
A)a rate of population growth that is less than the rate of growth of real GDP
B)a rate of population growth that is greater than the rate of growth of real GDP
C)an increase in the size of the labor force
D)an overall decrease in population

Question

Given a constant rate of growth of real GDP, what would cause a fall in real GDP per capita?
A)​a rate of population growth that is less than the rate of growth of real GDP
B)​a rate of population growth that is greater than the rate of growth of real GDP
C)​an increase in the size of the labor force
D)​an overall decrease in population

Quizplus · Accepted Answer

A greater rate of population growth than the rate of growth of real GDP would cause a fall in real GDP per capita as the total production (real GDP) would be spread over a larger population, resulting in a decrease in real GDP per person.

Given a Constant Rate of Growth of Real GDP, What