If real GDP is increasing more rapidly than the population, then:
A)interest rates must be falling.
B)the economy must be experiencing inflation.
C)per capita real GDP will be increasing.
D)per capita real GDP will be decreasing.

Question

If real GDP is increasing more rapidly than the population, then:
A)​interest rates must be falling.
B)​the economy must be experiencing inflation.
C)​per capita real GDP will be increasing.
D)​per capita real GDP will be decreasing.

Quizplus · Accepted Answer

When real GDP is increasing more rapidly than the population, per capita real GDP will be increasing. This means that the total output of goods and services is growing faster than the population, resulting in an increase in the standard of living for individuals in the economy. It does not necessarily imply a change in interest rates or inflation.

If Real GDP Is Increasing More Rapidly Than the Population