Economic Growth and GDP Comparison Analysis

Medium Macroeconomics Gdp And Growth

Consider two countries, Country A and Country B, both of which are experiencing economic growth. Country A has a higher Gross Domestic Product (GDP) but a smaller increase in GDP per capita, while Country B has a lower GDP but a significant increase in GDP per capita. The governments of both countries are adopting different policies to sustain their growth.

Which of the following statements is most likely true regarding the economic situation of these countries?

Country A is likely experiencing rapid population growth, causing its GDP per capita to rise slower than its total GDP.

Country B is better positioned for sustainable economic growth because it focuses on increasing GDP per capita.

High GDP levels automatically indicate that a country is developing better living standards for its citizens.

Hint

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