Suppose a nation's rate of growth of per capita real Gross Domestic Product (GDP)is 3 percent and its rate of growth in real GDP is 4 percent. Given this information, the nation's population growth rate is approximately equal to

Question

Quizplus · Accepted Answer

The rate of growth of per capita real GDP represents the increase in the value of economic output per person, adjusted for inflation. If this rate is 3 percent and the rate of growth in real GDP is 4 percent, then we can assume that the population of the nation is growing by approximately 1 percent (4 percent - 3 percent = 1 percent). Therefore, the best choice is A) 1 percent.

Suppose a Nation's Rate of Growth of Per Capita Real