If real GDP grows at a rate of 6 per cent and population grows at a rate of 2 per cent,then real GDP per person grows at a rate of

Question

Quizplus · Accepted Answer

Real GDP per person is calculated by dividing real GDP by the population.

Real GDP per person = Real GDP / Population

If real GDP grows at a rate of 6% and population grows at a rate of 2%, then we can calculate the growth rate of real GDP per person as follows:

Real GDP per person growth rate = Real GDP growth rate - Population growth rate

= 6% - 2%

= 4%

Therefore, the correct answer is C) 4 per cent.

If Real GDP Grows at a Rate of 6 Per