Real GDP per person in the Canada was $7,377 in 1950.Over the next 48 years it grew at a compound annual rate of 2.0%.If instead real GDP per person had grown at an average compound annual rate 2.5%, then real GDP per capita in the Canada in 1998 would have been approximately ______ larger.

Question

Quizplus · Accepted Answer

To find the difference in real GDP per capita, calculate the future value for both growth rates and subtract them. At 2.0%, the future value is $18,994. At 2.5%, it is $24,043. The difference is approximately $5,049.

Real GDP Per Person in the Canada Was $7,377 in 1950.Over