In a given year, suppose the nominal GDP growth rate is 7 percent, the inflation rate is 2 percent, and the population growth rate is 1.2 percent. What is the real GDP per capita growth rate?

Question

Quizplus · Accepted Answer

The real GDP growth rate is calculated by subtracting the inflation rate from the nominal GDP growth rate, which gives 5 percent (7 percent - 2 percent). To find the real GDP per capita growth rate, subtract the population growth rate from the real GDP growth rate, resulting in 3.8 percent (5 percent - 1.2 percent).

In a Given Year, Suppose the Nominal GDP Growth Rate