Consider two countries, A and B. In country A, real GDP per capita is $6,000. In country B, real GDP per capita is $9,000. Based on the economic growth model, what would you predict about the growth rates in real GDP per capita across these two countries?

The growth rate of real GDP per capita will be higher in country A than it is in country B.

Explanation:

The economic growth model is a tool to measure the economic growth rate in the level of saving and production of capital. Per capita is the indicator of economic growth by finding the income of per person in the nation. Real GDP per capita can be calculated by dividing real GDP with the population of the nation as every nation does not have the same population.

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