Last year the imaginary nation of Freedonia had a population of 2,800 and real GDP of 16,800,000.This year it had a population of 2,700 and real GDP of 15,390,000.About what was the growth rate of real GDP per person between last year and this year?
A)-5.3 percent
B)-5 percent
C)5 percent
D)5.3 percent

Question

Quizplus · Accepted Answer

To calculate the growth rate of real GDP per person, we divide the change in real GDP by the change in population and then multiply by 100 to get a percentage.

Change in real GDP = 15,390,000 - 16,800,000 = -1,410,000
Change in population = 2,700 - 2,800 = -100

Growth rate of real GDP per person = (-1,410,000/-100)*(100/16,800,000) = 0.8385

Multiplying by 100, we get approximately -5%. Therefore, the best choice is (B) -5 percent.

Last Year the Imaginary Nation of Freedonia Had a Population