Question

Mexico​'s real GDP was 1,761 billion pesos in 2005 and 1,822 billion pesos in 2006. Mexico​'s population growth rate in 2006 was 1.5 percent. Calculate Mexico​'s economic growth rate and growth rate of real GDP per person in 2006.

Answer 1

Answer:

The economic growth rate of Mexico in 2006 was 3.46%

Growth rate of real GDP per person =1.96%

Explanation:

In order to find the economic growth rate we will use the formula

(Real GDP in 2006-Real GDP in 2005)/Real GDP in 2005

(1822-1761)/1761

=61/1761=0.034=3.46%

The real GDP growth per person growth rate can be calculated by

(2006 Economic growth rate- Population growth rate)

3.46-1.5=1.96