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Suppose a country wanted to increase the rate of growth of its per capita real GDP....

Suppose a country wanted to increase the rate of growth of its per capita real GDP. It could do this by

A.decreasing the growth rate of real GDP and decreasing the population growth rate.

B.decreasing the growth rate of real GDP and increasing the population growth rate.

C.increasing the growth rate of real GDP and increasing the population growth rate.

D.increasing the growth rate of real GDP and decreasing the population growth rate.

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Answer #1

D ) it is the right answer . Because per capita GDP means , the GDP per head. So population growth rate should be decreasing along with an increasing real GDP to have a higher per capita GDP . Real GDP = nominal Gdp/ price level

Reasons for rejecting other options

A) wrong , because a reduction in both real GDP and population growth rate won't increase per capita GDP. B) wrong , increasing population growth rate will reduce precapita GDP . C ) wrong , if population growth rate increase along with the increase in real gdp , no considerable change would happen to per capita GDP .

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