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What can be said if a country's real GDP rises but income distribution is highly unequal?

Answer and explanation

Correct answer: Living standards need not rise equally for everyone

Real GDP measures the total volume of production, not how income or output is distributed among households. If most gains go to a small group, average or total GDP can rise while many people experience little improvement in income or living conditions. Option A is correct. The other choices claim facts that cannot be inferred from aggregate real GDP alone.

Related tags

Income DistributionReal GdpWelfareStandard Of LivingGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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