If real GDP rises by seven percent but population rises by nine percent, what can be said about real output per person?
Answer and explanation
Correct answer: यह घटने की संभावना है
Real output per person equals real GDP divided by population. Using the growth rates, the approximate change is (1.07/1.09) − 1, which is about −1.8 percent. Since population grows faster than real output, real output per person falls, making option B correct. Options C and D are mathematically impossible, while A contradicts the comparison of growth rates.
Frequently asked questions
What is the correct answer to this question?
यह घटने की संभावना है
Why is this the correct answer?
Real output per person equals real GDP divided by population. Using the growth rates, the approximate change is (1.07/1.09) − 1, which is about −1.8 percent. Since population grows faster than real output, real output per person falls, making option B correct. Options C and D are mathematically impossible, while A contradicts the comparison of growth rates.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates. Topic: GDP and Welfare.
