Last year the imaginary nation of Freedonia had a population of 2,700 and real GDP of 16,200,000. This year it had a population of 2,500 and real GDP of 14,640,000. What was the growth rate of real GDP per person between last year and this year?

Question

Quizplus · Accepted Answer

To find the growth rate of real GDP per person, calculate the GDP per person for each year and then find the percentage change. Last year: 16,200,000 / 2,700 = 6,000. This year: 14,640,000 / 2,500 = 5,856. The growth rate is ((5,856 - 6,000) / 6,000) * 100 = -2.4%.

Last Year the Imaginary Nation of Freedonia Had a Population