Suppose that the real Gross Domestic Product (GDP) growth rate for a country was 4 percent and the population growth rate was 7 percent. What would the per capital real Gross Domestic Product (GDP) growth rate be for this country?

Question

Quizplus · Accepted Answer

Per capita real GDP growth rate can be obtained by subtracting the population growth rate from the real GDP growth rate. 
Per capita real GDP growth rate = Real GDP growth rate - Population growth rate 
= 4% - 7% 
= -3% 
Therefore, the per capita real GDP growth rate for this country would be -3 percent, which means that the real GDP per person is decreasing by 3 percent due to the higher population growth rate compared to the real GDP growth rate.

Suppose That the Real Gross Domestic Product (GDP) Growth Rate