From 2009 to 2010, nominal gross domestic product GDP) in the United States grew by 3.8 percent. Given that prices increased by 1 percent and the population grew by 1 percent, we know that per capita real GDP grew by

Question

Quizplus · Accepted Answer

Per capita real GDP is calculated as nominal GDP divided by population, adjusted for inflation. From the given information, we can calculate that the inflation-adjusted GDP growth rate is 3.8% - 1% = 2.8%. We can then adjust this number for the population growth rate of 1% to find the per capita real GDP growth rate: 2.8% - 1% = 1.8%. Therefore, the correct answer is B.

From 2009 to 2010, Nominal Gross Domestic Product GDP) in the United