Real GDP per person in Northland is $30,000, while real GDP in Southland is $10,000, However, Northland's real GDP per person is growing at 1 percent per year, and Southland's real GDP per person is growing at 3 percent per year. If these growth rates persist indefinitely, then:
A. Northland's real GDP per person will always be between 1 and 2 percent greater than Southland's.
B. Northland's real GDP per person will decline until it equals Southland's.
C. Southland's real GDP per person will eventually be greater than Northland's.
D. Southland's real GDP per person will always be exactly 2 percent less than Northland's.
Answer: C
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