Question

Assume that GDP per capita for two countries is displayed in plot with a ratio scale on the y-axis and a linear time scale (in years) on the x-axis. If the two times series are straight lines in this plot, then the growth rates are __________over time. If in addition, the two lines are parallel and upward-sloping, then the income gap is ______________in absolute terms.

Answer 1

Answer:

The correct answer that fills the gaps are: constant ; increasing.

Explanation:

GDP per capita, income per capita or income per capita is an economic indicator that measures the relationship between the level of income of a country and its population. For this, the Gross Domestic Product (GDP) of said territory is divided by the number of inhabitants.

The use of per capita income as an indicator of wealth or economic stability of a territory makes sense because through its calculation national income is interrelated (through GDP in a specific period) and the inhabitants of this place.

The objective of GDP per capita is to obtain data that somehow shows the level of wealth or well-being of that territory at a given time. It is often used as a measure of comparison between different countries, to show differences in economic conditions.