In 2009, the imaginary nation of Platland had a population of 10,000 and real GDP of 42,000,000. During the year its real GDP grew by about 1.98%. Which of the following sets of growth rates is consistent with this growth in real GDP?
A)1% population growth and 3% real GDP growth
B)3% population growth and 1% real GDP growth
C)3% population growth and 6% real GDP growth
D)6% population growth and 3% real GDP growth

Question

Quizplus · Accepted Answer

The real GDP growth rate of 1.98% can be achieved with 1% population growth and 3% real GDP growth, as the net effect on GDP per capita would align with the given growth rate.

In 2009, the Imaginary Nation of Platland Had a Population