What is the annual rate of growth of per capita real GDP if real GDP grows at a constant rate of 4 percent per year and the annual rate of population growth is 3 percent?

Question

Quizplus · Accepted Answer

The formula for per capita real GDP growth rate is:

Per capita real GDP growth rate = Real GDP growth rate – Population growth rate

Substituting the given values, we get:

Per capita real GDP growth rate = 4% - 3% = 1%

Therefore, the annual rate of growth of per capita real GDP is 1 percent.

What Is the Annual Rate of Growth of Per Capita