Real GDP per capita: cannot grow more rapidly than real GDP. cannot decrease if Real GDP increases. necessarily grows more rapidly than real GDP. can increase or decrease when Real GDP increases.

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Business

Frank Contreras

3 July, 21:49

Real GDP per capita: cannot grow more rapidly than real GDP. cannot decrease if Real GDP increases. necessarily grows more rapidly than real GDP. can increase or decrease when Real GDP increases.

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Answers (1)

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German Mcguire · Answer 1

Real GDP per capita can increase or decrease when Real GDP increases

Explanation:

Real GDP per capita is calculated by dividing Real GDP by the number of people in a country. Therefore:

If population increase more quickly than the increase in real GDP, then real GDP per capita would decrease. If population decreases, stays the same or increases more slowly as Real GDP increases, then real GDP per capita would increase.