Asked by
Jayla Ivory
on Nov 25, 2024Verified
Assume a DVC has a real per capita output of $1,000 as compared to $20,000 for an IAC. If both nations realize a 2 percent growth of their real per capita outputs, after one year the absolute real per capita output gap will
A) increase by $380.
B) increase by $19,380.
C) decrease by $1,000.
D) remain unchanged at $19,000.
Real Per Capita
An economic measure that represents the inflation-adjusted income or wealth of an individual, considering the overall population, to determine living standards.
Absolute Gap
In economics, the total difference in economic indicators, such as income or wealth, between entities without considering size or proportion.
- Assess alterations in per capita income levels and understand their impact.
Verified Answer
KE
Learning Objectives
- Assess alterations in per capita income levels and understand their impact.
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