Under what condition does the real GNP per capita increase?

Show Answers

When government initiatives shift resources from capital goods to consumer goods.When trade restrictions like tariffs and quotas stop international trade and keep currency within each nation.When the growth rate of real GNP exceeds the population growth rate.When consumption spending grows faster than savings.

Explanation

Real GNP per capita rises when the economy's real output grows faster than the population, meaning the average income per person improves. Shifting resources away from investment, imposing trade barriers, or increasing consumption relative to savings do not directly lead to an increase in real GNP per capita.