Asked by Kesjan Kalemi on May 30, 2024
Verified
Last year real GDP in the imaginary nation of Nylon was 435.0 billion and the population was 2.6 million. The year before, real GDP was 380.0 billion and the population was 2.3 million. What was the growth rate of real GDP per person during the year?
A) 14.5 percent
B) 0.01 percent
C) 1.01 percent
D) 1.3 percent
Real GDP
The measure of a country's economic output adjusted for price changes, reflecting the true value of goods and services produced over a specific period.
- Compute and explain the expansion rate of real Gross Domestic Product per capita.
Verified Answer
KP
Keval PatelMay 30, 2024
Final Answer :
D
Explanation :
The growth rate of real GDP per person is calculated by first finding the real GDP per person for each year and then calculating the percentage growth. For the year before last, real GDP per person = 380.0 billion / 2.3 million = 165.22. For last year, real GDP per person = 435.0 billion / 2.6 million = 167.31. The growth rate = [(167.31 - 165.22) / 165.22] * 100 = 1.26%, which rounds to 1.3%.
Learning Objectives
- Compute and explain the expansion rate of real Gross Domestic Product per capita.