Question

Choose the statement that is incorrect.

A.Real GDP per person growth rate is approximately equal to the real GDP growth rate minus the population growth rate.
B.Real GDP per person equals real GDP divided by the population.
C.The standard of living depends on real GDP per person.
D.Real GDP per person grows whenever real GDP grows.

Answer 1

The incorrect statement is that real GDP per person grows whenever real GDP grows, as this fails to account for population growth rates, which determine GDP per capita and standard of living.

Step-by-step explanation:

The statement that is incorrect is:

D. Real GDP per person grows whenever real GDP grows.

This statement is not necessarily true because real GDP per person, which is a measure of the standard of living, is calculated by dividing the real GDP by the population. Therefore, if the population grows faster than real GDP, then real GDP per person could actually decrease, indicating a potential decrease in the standard of living. In contrast, real GDP per person could increase even if real GDP is falling, provided that the population is decreasing at a faster rate.