Real GDP in the country of Oz is growing at 5 per cent and its population is growing at 2 per cent. In the country of Lilliput, real GDP is growing at 4 per cent and its population is growing at 0.5 per cent. Thus,

Question

Quizplus · Accepted Answer

Real GDP per person (or per capita) growth rate can be calculated by subtracting the population growth rate from the real GDP growth rate. For Oz, the real GDP per person is growing at 5% - 2% = 3%. For Lilliput, it's growing at 4% - 0.5% = 3.5%. Therefore, real GDP per person in Lilliput is growing at a faster rate than in Oz.

Real GDP in the Country of Oz Is Growing at 5