2012 · Q6
Which of the following statements is/are correct?
- 1If a country is experiencing increase in its per capita GDP, its GDP must necessarily be growing.
- 2If a country is experiencing negative inflation, its GDP must be decreasing.
Select the correct answer using the code given below:
General KnowledgeEconomics
- A1 only
- B2 only
- CBoth 1 and 2
- DNeither 1 nor 2
Explanation
Per capita GDP can rise while total GDP falls if population shrinks faster; deflation does not necessarily mean falling GDP. Neither statement follows.