Suppose That Population Grows by 2 Per Cent

Multiple Choice

Suppose that population grows by 2 per cent. For the standard of living to rise, which of the following must occur?

A) Nominal GDP must grow by more than 2 per cent.
B) Real GDP must grow by more than 2 per cent.
C) Real GDP per capita must grow by more than 2 per cent.
D) Consumption spending must grow by more than 2 per cent.