Real GDP per person in Richland is $20,000, while real GDP per person in Poorland is $10,000. However, Richland's real GDP per person is growing at 1 percent per year, and Poorland's real GDP per person is growing at 2 percent per year. After 50 years, real GDP per person in Richland minus real GDP in Poorland is:

A. positive and greater than $10,000.
B. negative.
C. zero.
D. positive but less than $10,000.


Answer: D

Economics

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