Iceland's real GDP grows at a rate of 2.6 percent and population grows at a rate of 0.8 percent.Iceland's real GDP per person grows at a rate of

Question

Quizplus · Accepted Answer

Real GDP per person, also known as real GDP per capita, is calculated by dividing real GDP by the total population. Therefore, the growth rate of real GDP per person can be calculated as:

Growth rate of real GDP per person = Growth rate of real GDP - Growth rate of population

Substituting the given values, we get:

Growth rate of real GDP per person = 2.6% - 0.8% = 1.8%

Therefore, the correct answer is A) 1.8 percent.

Iceland's Real GDP Grows at a Rate of 2