From 2009 to 2010,nominal gross domestic product (GDP)in the United States grew by 3.8%.Given that prices increased by 1% and the population grew by 1%,we know that per capita real GDP grew by:

Question

Quizplus · Accepted Answer

Per capita real GDP is calculated by dividing the nominal GDP by the population and then adjusting for inflation (or changes in prices). To calculate per capita real GDP growth, we need to account for both the growth in nominal GDP and changes in population and prices. In this case, we know that nominal GDP grew by 3.8%, but prices increased by 1% and the population also grew by 1%. Therefore, we need to adjust the nominal GDP growth rate by subtracting the combined effect of inflation and population growth. This gives us a per capita real GDP growth rate of approximately 1.8% (i.e. 3.8% - 2%). Therefore, the correct answer is B) 1.8%.

From 2009 to 2010,nominal Gross Domestic Product (GDP)in the United