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

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.