Question

A state's high GSDP growth rate, coupled with a stagnant per capita GSDP, most likely indicates:

• A. High inflation
• B. A decline in foreign investment
• C. A decrease in government expenditure
• D. A significant increase in population

Answer 1

Answer:

D. A significant increase in population

• If the total economic output (GSDP) is growing but the output per person (per capita GSDP) remains the same, it suggests that the population is growing at a rate similar to the GSDP, diluting the benefits of economic growth.