During a presidential campaign,the incumbent argues that he should be reelected because GDP grew by 12 percent during his 4-year term in office.You know that population grew by 4 percent over the period,and that the GDP deflator increased by 6 percent during the past 4 years.You should conclude that real GDP per person

Question

Quizplus · Accepted Answer

Real GDP per person is calculated by dividing the GDP by the population and adjusting for inflation using the GDP deflator. Therefore, real GDP per person growth can be calculated as follows:
Real GDP growth = Nominal GDP growth - Inflation
Real GDP per person growth = (Nominal GDP growth - Inflation) - Population growth rate
Substituting the given values, we get:
Real GDP per person growth = (12% - 6%) - 4% = 2%
Therefore, real GDP per person grew but by less than 12 percent.

During a Presidential Campaign,the Incumbent Argues That He Should Be