If real GDP per capita in the United States is $8,000 in 2013,and if real GDP per capita is $12,000 in 2023,what is the average annual percent change in the growth rate of GDP per capita between 2013 and 2023?
A)3.33%
B)5%
C)33%
D)50%

Question

Quizplus · Accepted Answer

To calculate the average annual percent change in the growth rate of GDP per capita, we can use the following formula:

Average annual percent change = ((Ending value / Beginning value) ^ (1/number of years)) - 1

Plugging in the values, we get:

Average annual percent change = (($12,000 / $8,000) ^ (1/10)) - 1
Average annual percent change = (1.5 ^ 0.1) - 1
Average annual percent change = 0.05 or 5%

Therefore, the answer is choice B) 5%.

If Real GDP Per Capita in the United States Is