If Real GDP in the United States Is Growing at an Annual

question 21

Multiple Choice

If real GDP in the United States is growing at an annual rate of 3.2% per capita and Bolivia's real GDP per capita is growing at a rate of 1.3%,which of the following would we expect in the long run? Assume real GDP per capita in the United States begins at a level above that of real GDP per capita in Bolivia.

• A)Real GDP per capita in the United States will always be 1.9% higher than real GDP per capital in Bolivia.
• B)The difference between the level of real GDP per capita in the United States and real GDP per capita in Bolivia will shrink over time.
• C)The difference between the level of real GDP per capita in the United States and real GDP per capita in Bolivia will increase over time.
• D)The difference between the level of real GDP per capita in the United States and real GDP per capita in Bolivia will always be $1.9 trillion.

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Definitions:

Intermediate Warehouses

Facilities used to store goods temporarily during the middle stages of the supply chain, typically between the manufacturer and the final distribution centers.

Simplicity

Simplicity in a business or design context refers to minimizing complexity to focus on essential features, often leading to increased efficiency and ease of use.

Publicly Owned

Refers to assets owned by the government or the public sector, intended for the benefit of the general public.

Infrastructure

Refers to the basic physical and organizational structures and facilities (e.g., buildings, roads, power supplies) needed for the operation of a society or enterprise.