How is per capita GDP affected by GDP growth and population growth?
What will be an ideal response?
Per capita GDP is the dollar value of GDP divided by total population. If GDP increases and population is constant, then per capita GDP will grow. If population and GDP grow at the same time, then GDP must grow at a more rapid rate than population for per capita GDP to increase. Even if GDP grows, if population grows at a more rapid rate, then per capita GDP will decline.
Economics
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Ignoring any supply-side effects, when taxes are hiked, real GDP ________ and the price level ________
A) increases; rises B) decreases; rises C) increases; falls D) decreases; does not change E) decreases; falls
Economics
List and compare the four components of the expenditure approach to calculating GDP
What will be an ideal response?
Economics