Real GDP Per Person in Northland Is $30,000, While Real

question 46

Multiple Choice

Real GDP per person in Northland is $30,000, while real GDP in Southland is $10,000, However, Northland's real GDP per person is growing at 1 percent per year, and Southland's real GDP per person is growing at 3 percent per year. If these growth rates persist indefinitely, then:

• A)Northland's real GDP per person will decline until it equals Southland's.
• B)Northland's real GDP per person will always be between 1 and 2 percent greater than Southland's.
• C)Southland's real GDP per person will always be exactly 2 percent less than Northland's.
• D)Southland's real GDP per person will eventually be greater than Northland's.

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