What are the factors that can cause real GDP per capita to decrease?

There are several factors that can cause real GDP per capita to decrease:

1. Economic recession: During a recession, there is a decline in economic activity, leading to a decrease in real GDP per capita. This can be caused by factors such as a decrease in consumer spending, investment, and overall business activity.

2. Natural disasters: Natural disasters like hurricanes, earthquakes, or floods can cause significant damage to infrastructure, disrupt production, and lead to a decrease in real GDP per capita. The costs associated with rebuilding and recovery can also impact economic growth.

3. Decline in productivity: If there is a decrease in productivity levels within an economy, it can result in a decrease in real GDP per capita. This can be caused by factors such as a decline in technological advancements, a decrease in the quality of labor, or inefficient use of resources.

4. Population growth: If the population grows at a faster rate than the increase in real GDP, it can lead to a decrease in real GDP per capita. This is because the available output needs to be divided among a larger population, resulting in a decrease in the average income and living standards.

5. Inflation: Inflation, which refers to a sustained increase in the general price level of goods and services, can erode the purchasing power of individuals and decrease real GDP per capita. When prices rise faster than wages, people can afford fewer goods and services, leading to a decrease in real GDP per capita.

6. Government policies: Poor economic policies, such as excessive taxation, burdensome regulations, or inadequate investment in infrastructure, can hinder economic growth and lead to a decrease in real GDP per capita.

It is important to note that these factors can interact with each other and have both short-term and long-term effects on real GDP per capita.