Country D and Country E both recorded an increase in real GDP of 4 percent per year from 1997 to 2007. During this time, the population for Country D grew at 3 percent per year and the population for Country E grew at 2 percent. Which of the following is true during this period?

A. Per capita GDP decreased for both Country D and Country E.
B. Per capita GDP increased for both Country D and Country E.
C. Per capita GDP increased for Country D only.
D. Per capita GDP decreased for Country E only.

Ans: B. Per capita GDP increased for both Country D and Country E.

Economics

You might also like to view...

For a given supply curve, the deadweight loss from the imposition of a tax is smaller if demand is more elastic

Indicate whether the statement is true or false

Economics

When poor families are compared to nonpoor families of the same ethnic background, significant cultural differences appear

Indicate whether the statement is true or false

Economics