If real GDP per capita is decreasing, real output is:
A)growing less rapidly than the population.
B)growing more rapidly than the population.
C)growing at the same rate as the population.
D)growing more rapidly than are prices.

Question

If real GDP per capita is decreasing, real output is:
A)​growing less rapidly than the population.
B)​growing more rapidly than the population.
C)​growing at the same rate as the population.
D)​growing more rapidly than are prices.

Quizplus · Accepted Answer

Real GDP per capita is calculated by taking real GDP (adjusted for inflation) and dividing it by the population. If real GDP per capita is decreasing, it means that real output is not growing as fast as the population. This could be caused by a variety of factors, such as a decrease in productivity, a decrease in investment, or a decrease in innovation.

If Real GDP Per Capita Is Decreasing, Real Output Is