GDP Versus GDP Per Capita
Which of the following best explains why a country with a high total gross domestic product (GDP) could have a low GDP per capita?
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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