If GDP per capita in year T is represented by YT and the GDP per capita in the following year is represented by YT₊₁,then the formula for calculating the growth rate between these two years is ________.

Question

Quizplus · Accepted Answer

The formula for calculating the growth rate between two years is the change in the GDP per capita over the initial GDP per capita. Therefore, the growth rate formula can be expressed as (YT₊₁ - YT)/YT. Option A is incorrect because it divides the growth rate by 100. Option C and D are also incorrect since they are not measures of relative growth rate.

If GDP Per Capita in Year T Is Represented by YT