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The image describes a question about the Real GDP per person in two regions, Northland and Southland. It provides their initial values and the annual growth rates for each region. Here's the problem:

- Northland's real GDP per person is currently $30,000, and it is growing at a rate of 1% per year.
- Southland's real GDP per person is currently $10,000, and it is growing at a rate of 3% per year.

The question asks to predict what will eventually happen if these growth rates persist indefinitely. The options provided are:

A. **Northland's real GDP per person will decline until it equals Southland's.**
B. **Northland's real GDP per person will always be between 1 and 2 percent greater than Southland's.**
C. **Southland's real GDP per person will always be exactly 2 percent less than Northland's.**
D. **Southland's real GDP per person will eventually be greater than Northland's.**

### To solve this:

We know that Southland's GDP is growing at a faster rate (3%) compared to Northland's (1%). Therefore, while Northland currently has a much higher real GDP per person, Southland's faster growth rate means that over time, Southland's GDP per person will catch up and eventually surpass Northland's if these rates continue indefinitely.

The correct answer is **D**: *Southland's real GDP per person will eventually be greater than Northland's*.

Would you like to go into more details or have further questions? Here are some related queries to explore:

1. How can exponential growth help predict when Southland's GDP will surpass Northland's?
2. What factors could influence real GDP growth rates in countries?
3. Can real GDP growth rates change over time? What would cause such changes?
4. How do compounding growth rates affect economies over time?
5. How would population growth interact with GDP growth in these scenarios?

**Tip:** When comparing growth rates, the region with the higher percentage increase will eventually catch up, even if starting from a lower base.

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, what will happen?

Analyze the long-term impact of different GDP growth rates in two regions, Northland and Southland. With Northland's GDP per person growing at 1% annually and Southland's at 3%, this problem explores when Southland will surpass Northland.

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