What is GDP growth rate and how does it differ from GDP per capita?

• A. GDP growth rate measures per capita output; GDP per capita measures total output.
• B. GDP growth rate measures inflation; GDP per capita measures population.
• C. They are the same thing; no difference.
• D. GDP growth rate measures total output change; GDP per capita measures average output per person.

Answer: (D)

GDP growth rate shows how the total value of a country’s production changes from one period to the next. It’s about the change in overall output, usually calculated using real GDP to strip out price changes, and it’s expressed as a percentage.

GDP per capita, on the other hand, splits that total output among the people: it’s GDP divided by the population, so it reflects average production per person. Its growth rate depends on both how much the economy grows and how fast the population grows.

That’s why the best answer says the GDP growth rate measures total output change, while GDP per capita measures average output per person. The other ideas mix up what each measure captures—for example, confusing growth with inflation, or incorrectly treating them as the same, or swapping total output with per-person output.