Last year real GDP in the imaginary nation of Populia was 907.5 billion and the population was 3.3 million. The year before real GDP was 750 billion and the population was 3 million. What was the growth rate of real GDP per person during the year?
a. 10 percent b. 14 percent c. 17 percent d. 21 percent
(907.5)/(3.3) / (750/3) = 1.1
so, 10% growth
To find the growth rate of real GDP per person during the year, we can follow these steps:
Step 1: Calculate the real GDP per person for each year.
Real GDP per person = Real GDP / Population
For the first year:
Real GDP per person = 907.5 billion / 3.3 million
Real GDP per person = 275 billion
For the second year:
Real GDP per person = 750 billion / 3 million
Real GDP per person = 250 billion
Step 2: Calculate the growth rate of real GDP per person.
Growth rate = ((New value - Old value) / Old value) * 100
Growth rate = ((275 billion - 250 billion) / 250 billion) * 100
Growth rate = (25 billion / 250 billion) * 100
Growth rate = 0.1 * 100
Growth rate = 10 percent
Therefore, the growth rate of real GDP per person during the year is 10 percent.
The correct answer is (a) 10 percent.