Assume a DVC Has a Real Per Capita Output of $1,000

question 103

Multiple Choice

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 4 percent growth of their real per capita outputs, after one year the absolute real per capita output gap will

• A)remain unchanged at $19,000.
• B)increase by $760.
• C)decrease by $1,000.
• D)increase by $19,760.

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