Real GDP was $9,950 billion in Year 1 and $10,270 billion in Year 2.The population rose from 270 million in Year 1 to 275 million in Year 2.What was the approximate increase in real GDP per capita rate from Year 1 to Year 2?

Question

Quizplus · Accepted Answer

Real GDP per capita is calculated by dividing real GDP by the population. In Year 1, real GDP per capita was $9,950 billion / 270 million = $36,852. In Year 2, real GDP per capita was $10,270 billion / 275 million = $37,345. The approximate increase in real GDP per capita rate from Year 1 to Year 2 was ($37,345 - $36,852) / $36,852 * 100 = 1.3%.

Real GDP Was $9,950 Billion in Year 1 and $10,270