Last year real GDP in the imaginary nation of Nylon was 435.0 billion and the population was 2.6 million. The year before, real GDP was 380.0 billion and the population was 2.3 million. What was the growth rate of real GDP per person during the year?

Question

Quizplus · Accepted Answer

The growth rate of real GDP per person is calculated by first finding the real GDP per person for each year and then calculating the percentage growth. For the year before last, real GDP per person = 380.0 billion / 2.3 million = 165.22. For last year, real GDP per person = 435.0 billion / 2.6 million = 167.31. The growth rate = [(167.31 - 165.22) / 165.22] * 100 = 1.26%, which rounds to 1.3%.

Last Year Real GDP in the Imaginary Nation of Nylon