Question

UK real GDP was 1360 trillion pounds in 2009 and 1434 trillion pounds in 2010.UK population was 191.5 million people in 2009 and 193.5 million in 2010. calculate the economic growth rate ,the growth rate of real GDP per person,

Answer 1

Real GDP growth rate = (most recent year's real GDP - the last year's real GDP) / the previous year's real GDP

UK real GDP growth rate = (1434- 1360)/1360

= 0.0544X100= 5.44%

Real GDP growth rate per person = 5.44%/(193.5-191.5) = 2.72%