Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 19: Q 8 (page 470)

Is it possible for GDP to rise while at the same time per capita GDP is falling? Is it possible for GDP to fall while per capita GDP is rising?

Short Answer

Expert verified

Yes it is possible for GDP to rise in this situation.

Step by step solution

01

Step 1. GDP

GDP is a type of monetary measure. this represents the calculated value of finished goods and services of a country or different countries for a specific period of time.

02

Step 2. Explanation

Answer to this question is yes.

It is possible for GDP to rise where at the same time per capita income is falling. The reason behind is very clear. The reason for following situation is:

03

Step 3. Reason

POPULATION

The answer to following situation depends on the population growing rate of economy.

If Population of country increases at faster rate than the GDP then the GDP rate will rise, but GDp per capita will decrease.

Same when population increases at slower rate than GDP, GDP rate of country will fall but GDP per capita will rise.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Cross country comparisons of GDP per capita typically use purchasing power parity equivalent exchange rates, which are a measure of the long run equilibrium value of an exchange rate. In fact, we used PPP equivalent exchange rates in this module. Why could using market exchange rates, which sometimes change dramatically in a short period of time, be misleading?

U.S. macroeconomic data are among the best in the world. Given what you learned in the Clear It Up "How do statisticians measure GDP?", does this surprise you, or does this simply reflect the complexity of a modern economy?

Would you usually expect GDP as measured by what is demanded to be greater than GDP measured by what is supplied, or the reverse?

According to Table 19.7, how long has the average expansion lasted since the end of World War II?

Which of the following are included in GDP, and which are not?

  1. The cost of hospital stays
  2. The rise in life expectancy over time
  3. Child care provided by a licensed day care center
  4. Child care provided by a grandmother
  5. A used car sale.
  6. A new car sale
  7. The greater variety of cheese available in supermarkets
  8. The iron that goes into the steel that goes into a refrigerator bought by a consumer.
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free