From 2010 to 2011, nation A's real GDP increased from $100 billion to $106 billion and its population grew from 50 million to 51 million. Its annual growth rate in real GDP per capita was approximately _____%.

Question

Quizplus · Accepted Answer

Real GDP per capita is the real GDP divided by the population. 
Real GDP per capita in 2010 = $100 billion / 50 million = $2,000.
Real GDP per capita in 2011 = $106 billion / 51 million = $2,078.43 (rounded to two decimal places).
The percentage increase in real GDP per capita = [(Final value - Initial value) / Initial value] × 100%
= [(2078.43 - 2000) / 2000] × 100% ≈ 4%
Therefore, the annual growth rate in real GDP per capita was approximately 4%. Thus, the best choice is C) 4.

From 2010 to 2011, Nation A's Real GDP Increased from $100