Question

What would it signify if the population of a country was growing while the real GDP remained the same?

A. The country is in economic growth.

B. The country is in economic decline.

C. The country is experiencing a population decline.

D. The country is experiencing population growth.

I know it isn't C or A, but I can't decide between B or D

Edit: it isn't D so now I'm not sure about any answer

Answer 1

B. The country is in economic decline.

Step-by-step explanation:

The economic growth rate is determined by the percentage change in real GDP per capita at the end of a period. Real GDP refers to the total value of all products and services produced in an economy after adjusting for inflation. Reals GDP helps compares economic growth in different seasons to identify the direction of economic growth.

If the population is growing, but the real GDP is constant, it means that real GDP per capita is decreasing. Real GDP is capital is calculated by dividing real GDP by the population. Therefore, real GDP per capita is the measure that determines actual economic growth in a country. An increase in real GDP signifies that people's standard of living is increasing. Real GDP per capita is the GDP per individual in a country. For there be economic growth, real GDP growth must match or be greater than the population growth.