Question

What would it signify if the population of a country remained the same while the real GDP increased? A) the economy is in decline B) the population is growing C) the population is declining D) the economy is growing

Answer 1

D) the economy is growing

Step-by-step explanation:

GDP is the sum of the wealth produced by a nation's economic agents. If a nation has no population increase, but GDP increases, it means that economic agents have increased their productivity, which generates an increase in GDP. In other words, this means that the same number of people are producing a higher value compared to a previous period.

Answer 2

If the population of the country remained the same, you can automatically eliminate B and C. If the GDP is increasing, that means that the economy is growing.