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A country with rapidly growing GDP but even faster population growth will see GDP per capita:
AIt will fall
BIt will rise
CHold steady
DReach zero
Answer & Solution
Correct answer: A. It will fall
1. Per capita figures are a ratio, so both parts matter.
2. GDP per capita is the GDP divided by the population.
3. A ratio falls when the denominator grows faster than the numerator.
4. Here population is the denominator and it is growing faster.
5. So GDP per capita falls despite GDP rising.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 5 'The Macroeconomic Perspective'_
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