Nominal GDP stable, real GDP per capita declined due to population growth

Steps:

• Calculate nominal GDP: multiply price level by total output quantity; it remains unchanged from year 1 to year 2.
• Compute real GDP: divide nominal GDP by price level (using year 1 as base); real GDP stays constant since prices and nominal GDP are stable.
• Determine real GDP per head: divide real GDP by population; population rises, so per capita value falls.
• Compare changes: nominal GDP shows no change, real GDP per head decreases.

Why A is correct:

• Nominal GDP = price level × real GDP quantity; with no change in either, nominal GDP is unchanged, while per capita real GDP falls with higher population (real GDP per capita = real GDP / population).

Why the others are wrong:

• B: Real GDP per head fell, did not rise.
• C: Real GDP per head fell, not no change.
• D: Real GDP per head fell, did not rise.

Final answer: A