Answer to Question #92654 in Macroeconomics for Ndienekhonani Nengovhela

Question

. the inflation rate[3].

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. $\frac{0.05441}{193.3-191.5}$ = 0.03023

c. $\frac{72}{3}$ =24 years