If a country has negative GDP growth but positive population growth, we can concludeMultiple choice question.per capita GDP is increasing.per capita GDP is staying constant.per capita GDP is decreasing.
Question
If a country has negative GDP growth but positive population growth, we can concludeMultiple choice question.per capita GDP is increasing.per capita GDP is staying constant.per capita GDP is decreasing.
Solution
To determine the correct answer, we need to understand the relationship between GDP growth, population growth, and per capita GDP.
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GDP Growth: If a country has negative GDP growth, it means the total economic output of the country is decreasing.
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Population Growth: If the population is growing, the number of people in the country is increasing.
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Per Capita GDP: This is calculated by dividing the total GDP by the total population. It represents the average economic output per person.
Given that the GDP is decreasing (negative GDP growth) and the population is increasing (positive population growth), the per capita GDP will be affected as follows:
- Negative GDP Growth: The numerator (total GDP) is decreasing.
- Positive Population Growth: The denominator (total population) is increasing.
When the numerator decreases and the denominator increases, the overall value (per capita GDP) will decrease.
Therefore, the correct conclusion is:
per capita GDP is decreasing.
Similar Questions
As long as GDP growth is Blank______ population growth, a country will experience an increase in per capita GDP.Multiple choice question.less thanequal togreater
Population growth can:a.promote economic growth as long as policies based on nominal GDP per capita are in placeb.promote economic growth as long as policies based on nominal GDP growth are in placec.promote economic growth as long as policies based on real GDP per capita are in placed.promote economic growth as long as policies based on real GDP growth are in place
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.
Real GDP per capitaMultiple Choicecannot grow more rapidly than real GDP.cannot grow more slowly than real GDP.necessarily grows more rapidly than real GDP.can grow either more slowly or more rapidly than real GDP.
If real GDP is growing at a slower rate than the growth rate of population,
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