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If the value of the goods and services a country produces stays the same while its population increases, which statement must be true?A.The country's total GDP has increased.B.The country's per capita GDP has decreased.C.The country's unemployment rate has decreased.D.The country's rate of inflation has increased.

Question

If the value of the goods and services a country produces stays the same while its population increases, which statement must be true?A.The country's total GDP has increased.B.The country's per capita GDP has decreased.C.The country's unemployment rate has decreased.D.The country's rate of inflation has increased.

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Solution

The statement that must be true is B. The country's per capita GDP has decreased.

Here's why:

GDP (Gross Domestic Product) is the total value of all goods and services produced by a country in a certain period. Per capita GDP is the GDP divided by the population, which gives the average economic output per person.

If the total GDP stays the same while the population increases, the per capita GDP (total GDP/population) would decrease because the same amount of wealth is being spread among more people.

So, the correct answer is B. The country's per capita GDP has decreased.

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