Suppose a nation's real Gross Domestic Product (GDP)grows at a rate of 2 percent per year while its population grows 2 percent annually. Given this information, this nation's annual rate of per capita real GDP growth is equal to

Question

Quizplus · Accepted Answer

Per capita real GDP is calculated by dividing the real GDP by the population. If the real GDP and the population both grow at the same rate, the per capita real GDP will remain constant. Therefore, in this case, the per capita real GDP growth rate will be 0 percent.

Suppose a Nation's Real Gross Domestic Product (GDP)grows at a Rate