Answer to Question #137792 in Macroeconomics for Soma

Question

3- Suppose country’s population grows at the rate of 2% per year and its output grows at the rate of 3% per year.
a. Calculate its rate of growth of per capita output

Answer 1

Population growth rate$\rightarrow$ $p.g.r=2\%$

output growth rate$\rightarrow o.g.r=3\%$

rate of growth of per capita output$=o.g.r-p.g.r$

$=3\%-2\%=1\%$

=1%