Question

Is it possible for GDP to rise while at the same time per capita GDP is falling? Is it possible for GDP to fall while per capita GDP is rising?

Short answer

The answer to both questions depends on whether GDP is growing faster or slower than population.

Step-by-step solution

Step 1. GDP

Gross Domestic Product (GDP) is the standard measure of the value-added value created through the production of goods and services in a country during a given period.

Step 2. Explanation

If the population grows faster than GDP, then GDP increases, while GDP per capita decreases.

If GDP falls, but population falls rapidly, GDP decreases, while GDP per capita increases.