4. Suppose An Economy's Real GDP Is $30,000 In Year 1 And $31,200 In Year 2. What Is The Growth Rate Of Its Real GDP? Assume That Population Is 100 In Year 1 And 102 In Year 2. What Is The Growth Rate Of GDP Per Capital?

Question

4. Suppose An Economy's Real GDP Is $30,000 In Year 1 And $31,200 In Year 2. What Is The Growth Rate Of Its Real GDP? Assume That Population Is 100 In Year 1 And 102 In Year 2. What Is The Growth Rate Of GDP Per Capital?

2 Answers

Answer Question

Answer 1

Real GDP growth = (31'200 / 30'000) - 1 = 1.04 - 1 = 0.04 = +4%

Real per ca pita GDP Year1 = 30'000/100 = 300.00
Real per ca pita GDP Year2 = 31'200/102 ≈ 305.88
Per ca pita GDP growth = (305.88 / 300) - 1 ≈ 1.0196 - 1 = 0.0196 = +1.96%

Answer 2

Real GDP growth (31200/30000)-1=.04 = 4 %
real per capita GDP year 1 = (30000/100)=300
real per capita GDP year 2 = (31200/102)= 305.88
per capita GDP growth = (305.88/300)-1=1.0196=1.96%