Suppose a nation's population grows by 2 percent and, at the same time, its GDP grows by 5 percent. Approximately how fast will real GDP per person increase?

Question

Quizplus · Accepted Answer

Real GDP per person increases by approximately 3 percent per year because the GDP growth rate (5 percent) minus the population growth rate (2 percent) equals the growth rate of GDP per capita.

Suppose a Nation's Population Grows by 2 Percent And, at the Same