Answer to Question #144611 in Macroeconomics for Dina Maya

Question

In 1980, Denmark had a GDP of $70 billion (measured in U.S. dollars) and a population of 5.1 million. In 2000, Denmark had a GDP of $160 billion (measured in U.S. dollars) and a population of 5.3 million. By what percentage did Denmark’s GDP per capita rise between 1980 and 2000?

Answer 1

GDP per capita $= \frac{GDP}{Population}$

Denmark had a population of 5.1 million and GDP of $70 billion in 1980.

GDP per capita of Denmark in 1980 $= \frac{70 \;billion}{5.1 \;million} = 13725.49$

Denmark had a population of 5.3 million and GDP of $160 billion in 2000

GDP per capita of Denmark in 2000 $= \frac{160 \;billion}{5.3 \;million} = 30188.68$

Percentage change in GDP per capita between 1980 and 2000 is given below:

Percentage change $= \frac{GDP \;per \;capita \;of\; Denmark \;in \;2000 - GDP \;per \;capita \;of \;Denmark \;in \;1980}{GDP \;per \;capita \;of \;Denmark\; in \;1980} \times 100$

$= \frac{30188.68 – 13725.49}{13725.49}\times 100 = 120$ %

GDP of Denmark was increased by 120 % between 1980 and 2000.