Suppose a nation's rate of growth of per capita real Gross Domestic Product (GDP) is 3 percent and its rate of growth in real GDP is 4 percent. Given this information, the nation's population growth rate is approximately equal to

Question

Quizplus · Accepted Answer

The rate of growth of real GDP per capita is 3%, which means that the average income per person is increasing by 3%. 
The rate of growth in real GDP is 4%, which means that the total income of the nation is increasing by 4%.
Thus the remaining 1% must be the population growth rate, which is equivalent to the difference between the growth in real GDP and the growth in real GDP per capita. Hence, the answer is A) 1 percent.

Suppose a Nation's Rate of Growth of Per Capita Real