If a country has 5% real GDP growth and 5% population growth, what is the growth rate of real GDP per capita?
A) 0%
B) 1%
C) 5%
D) 10%

Name: If a country has 5% real GDP growth and 5% population growth, what is the growth rate of real GDP per capita? A) 0% B) 1% C) 5% D) 10%
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Question

Quizplus · Accepted Answer

Real GDP per capita is calculated by dividing real GDP by population. If both real GDP and population increase by the same percentage (in this case, 5%), then real GDP per capita remains the same (i.e. 0% growth).

If a Country Has 5% Real GDP Growth and 5