Answer to Question #263166 in Macroeconomics for Haya

Question

Suppose that in 2015 a country has a population of 1 million and real GDP of $1 billion. In 2016, the population is 1.1 million and the real GDP is $1.1 billion. The real GDP per person growth rate is

Answer 1

Real GDP per Capita$=\frac{GDP}{Population}$

In 2015: $=\frac{1,000,000,000}{1,000,000}=1,000$

In 2016:$=\frac{1,100,000,000}{1,100,000}=1,000$

The real GDP per person growth rate is:

Percentage change in real GDP per Capita between the two consecutive years:

$=\frac{1,000-1,000}{1,000}\times100$

$=0$.