GDP Versus GDP Per Capita
A country is choosing to observe lower GDP per capita despite having a high overall GDP. What is the most likely cause for this observation?
A
A very large population dilutes the average income per person, resulting in a lower GDP per capita.
B
An inflated GDP deflator reduces the apparent value of nominal GDP on a per capita basis.
C
Significant income inequality reduces the median income, thereby lowering GDP per capita figures.
D
A high level of government spending that doesn’t translate directly into citizen income.
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