Question

From 2007–2008 Nation A noted that the real GDP increased from $100 billion to $106 billion. The population of Nation A also grew from 50 million to 51 million from 2007–2008. Based upon this information we can say that:_______. a. real GDP per capita increased because the real GDP increased at a slower rate than the population.b. real GDP per capita increased because the real GDP increased at a faster rate than the population.c. real GDP per capita decreased because the real GDP increased at a slower rate than the population.d. real GDP per capita decreased because the real GDP increased at a faster rate than the population.

Answer 1

The answer is B

Step-by-step explanation:

Real Gross Domestic Product (GDP) per Capita is the average level of national income (adjusted for inflation) per person To calculate the real GDP per capita, divide re GDP by the country's population.

Percentage growth in real GDP is

($106- $100) ÷ $100

6%

Percentage growth population is

($51 - $50) ÷ $50

2%

Percentage growth in real GDP is greater than the percentage growth in population and this means that the real GDP per capita will increase