In a given year, suppose the nominal GDP growth rate is 5 percent, the inflation rate is 1.2 percent, and the population growth rate is 3.8 percent. What is the real GDP per capita growth rate?

Question

Quizplus · Accepted Answer

The real GDP growth rate is the nominal GDP growth rate minus the inflation rate, which is 5% - 1.2% = 3.8%. The real GDP per capita growth rate is the real GDP growth rate minus the population growth rate, which is 3.8% - 3.8% = 0.0%.

In a Given Year, Suppose the Nominal GDP Growth Rate