How has the relative gap between GNP per capita for Western Europe and GNP per capita for African less-developed countries changed from the late nineteenth century to the present ?
Correct answer: B. increased
- A. declined
- B. increased
- C. remained the same
- D. cannot be determined
Explanation
The income gap widened because Western Europe industrialized and achieved sustained productivity growth much earlier and faster than most African less-developed countries. This process is known as global economic divergence.
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The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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