Question

An increase in nominal GDP Group of answer choices is both per capita and absolute real economic growth. is per capita real economic growth. is absolute real economic growth. does not necessarily mean either absolute or per capita real economic growth.

Answer 1

Answer:

does not necessarily mean either absolute or per capita real economic growth.

Explanation:

Nominal GDP can increase due to high inflation, and that is not real growth since the purchasing power of individuals, businesses and the government doesn't grow. Real GDP growth would mean absolute economic growth.

The GDP per capita measures the GDP divided by the total population of a country, so the nominal GDP or real GDP could grow, but if that growth is less than the population's growth, then the nominal and real GDP per capita will still decrease.