If real GDP per capita in the United States is $8,000 in 2016,and if real GDP per capita is $12,000 in 2026,what is the average annual percent change in the growth rate of GDP per capita between 2016 and 2026?

Question

Quizplus · Accepted Answer

To calculate the average annual percent change, we use the formula:
[(Ending Value / Beginning Value)^(1/Number of Years)] - 1

Plugging in the numbers we get:
[(12,000 / 8,000)^(1/10)] - 1 = 0.0475

Multiplying by 100 gives us the percentage:
4.75%

Therefore, the answer is B (5%), the closest choice to our calculated value.

If Real GDP Per Capita in the United States Is