Answer to Question #92223 in Macroeconomics for Vha ero

Question

6. UK’s real GDP was 1 360 trillion pounds [£] in 2009 and 1 434 trillion pounds in 2010. UK’s population was 191.5 million people in 2009 and 193.3 million in 2010.
Calculate.
a. the economic growth rate.[3]
b. The growth rate of real GDP per person [5]
c. The approximate number of years it takes for real GDP per person in the UK to double if the 2010 economic growth rate and population growth rate are maintained.[4]

Answer 1

a. $\frac{1434-1360}{1360}$ =0.05441

b.The growth rate of real GDP per person= $\frac{7.419-7.102}{7.102}$ = 0.0446

c. The GDP per person = 4.46% it will double= using the rule of 72 = $\frac{72}{4.46}$ = 16 year