In 2009, the imaginary nation of Florastan had a population of 8,300 and real GDP of 190,900. Florastan had 5% growth in real GDP per person. In 2010 it had a population of 8,400. What was real GDP in Florastan in 2010?

Question

Quizplus · Accepted Answer

To calculate the real GDP in 2010, we first need to calculate the real GDP per person in 2009. Real GDP per person can be calculated by dividing real GDP by the population, so:
Real GDP per person in 2009 = 190,900 / 8,300 = 23
Since Florastan had 5% growth in real GDP per person, we can calculate the real GDP per person in 2010 as:
Real GDP per person in 2010 = 23 x 1.05 = 24.15
To find the real GDP in 2010, we can multiply the real GDP per person by the population, so:
Real GDP in 2010 = 24.15 x 8,400 = 202,860
Therefore, the best choice is B.

In 2009, the Imaginary Nation of Florastan Had a Population