Answer:
The growth rate of the economy´s real GDP = 5.50%
The growth rate of the economy´s real GDP per capita= 3.43%
Explanation:
The GDP growth rate formula is:
[GDP(t)- GDP(t-1)/ GDP(t-1)]*100
t is years. We use this formula for this problem:
($42,200-$40,000)/ $40,000= 0.055*100= 5.50%
The growth rate of the economy´s real GDP = 5.50%
The formula of the real GDP per capita is:
Real GDP per capita = Real GDP(t)/ population(t)
Year 1:
Real GDP per capita= $40,000/100= $400
Year 2:
Real GDP per capita= $42,200/102= $413.72
To calculate the growth rate of the real GDP per capita we use the same the same formula before but now with real GDP per capita
($413.72-$400)/$400= 0.0343 = 3.43%
The growth rate of the economy´s real GDP per capita= 3.43%