What will happen to the annual rate of growth of per capita real GDP if real GDP grows at a constant rate of 4.5 percent and the annual rate of population growth goes from 3 percent to 3.5 percent?

Question

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The annual rate of growth of per capita real GDP is calculated as the difference between the annual rate of growth of real GDP and the annual rate of population growth. In this case, the annual rate of growth of per capita real GDP will decrease from 1.5 percent to 1 percent because real GDP grows at a constant rate of 4.5 percent, but population growth increases from 3 percent to 3.5 percent.

What Will Happen to the Annual Rate of Growth of Per