Last year Panglossia had real GDP of 3000 billion.This year it had real GDP of 3116 billion.Which of the following values of population would be consistent with a 2.5% growth rate of real GDP per person?

Question

Quizplus · Accepted Answer

To calculate the growth rate of real GDP per person, we need to divide the change in real GDP by the initial real GDP and population. 
Using the formula: growth rate of real GDP per person = (Real GDP this year - Real GDP last year) / (Real GDP last year x Population this year) x 100
We get: 2.5% = (3116 - 3000) / (3000 x Population) x 100
Simplifying this equation, we get:
Population = (3116 - 3000) / (2.5 x 3000 x 0.01) = 76 million
This means that only option B, where the population rose from 75 million to 76 million, is consistent with a 2.5% growth rate of real GDP per person.

Last Year Panglossia Had Real GDP of 3000 Billion