A country will experience a decreasing real GDP per capita if the rate of population growth is slower than the rate of increase in real GDP.

Question

BlackTom AI · Accepted Answer

Question: A country will experience a decreasing real GDP per capita if the rate of population growth is slower than the rate of increase in real GDP.
Option 1: True. This statement is not correct because when real GDP grows faster than the population, real GDP per capita rises, not falls. A slower population growth relative to GDP growth means more output per person, so per capita GDP increases.
Option 2: False. This statement contradicts the relationship between GDP growth and population growth. If the population growth rate is slower than the growth rate of real GDP, the average output per person (real GDP per capita) actually increases, leading to an improvement in living standards on a per-person basis rather than a decrease.
In summary, the scenario described in the True option would not create a decrease in real GDP per capita; instead, the per-capita measure would increase when GDP growth outpaces population growth. The False option aligns with that dynamic, explaining why the statement as given is incorrect.

MCD2090 Macroeconomics - Trimester 3 - 2025

A country will experience a decreasing real GDP per capita if the rate of population growth is slower than the rate of increase in real GDP.

View Explanation

Log in for full answers

Similar Questions

Real GDP per capita is found by

One indicator of a country's productivity is Blank ______.

Compute this economy's GDP per capita in the long run. Round your answer to the nearest tenth.

The short-run level effect of this influx of immigrants on GDP per capita is [ Select ] positive negative zero .

If Country A’s GDP is $500 billion and its population is 50 million, and Country B’s GDP is $1 trillion with a population of 200 million, which has the higher GDP per capita?

If real GDP grew by 6 percent and population grew by 2 percent, then real GDP per person grew by approximately ______ percent.

Country X has a population of 100 million and a GDP of $500 billion in 2017. Country Y has a population of 40 million and a GDP of $400 billion in 2017. Which economic measure would be most appropriate to make a comparison of the relative economic prosperity of each country?

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler