Suppose a nationʹs population grows by 2 percent and, at the same time, its GDP grows by 5 percent. Approximately how fast will real GDP per person increase?

Question

Quizplus · Accepted Answer

Real GDP per person can be calculated as the percentage change in GDP minus the percentage change in population. In this case, real GDP per person will increase at a rate of 5 percent - 2 percent = 3 percent per year. Therefore, option D is the correct answer.

Suppose a Nationʹs Population Grows by 2 Percent And, at the Same