Question

Between 1916 and​ 2016, the average growth rate of real GDP per person in the United States was 2 percent a year. Complete the sentence. During this​ period, ______ grew at a faster rate than​ ______.

Answer 1

The correct answer is real​ GDP; the population.

Step-by-step explanation:

Real GDP refers to the total value of goods and services produced by a country, without taking into account the inflation that occurred in the respective period.

Real GDP is equal to deflated nominal GDP according to the increase in the consumer price index [CPI].

In this way, the distortion caused by inflation is eliminated, especially when inflation is very high, since the only increase in the prices of goods and services can inflate GDP, without actually producing an effective increase in production. national.

The GDP will have effectively increased when its increase is greater than the increase in the prices of the goods and services that comprise it.