Question

From 2010 to 2011, nation A's real GDP increased from $100 billion to $106 billion and its population grew from 50 million to 51 million. As a result, real GDP per capita _____ because real GDP rose _____ than the population.

Answer 1

Answer:

As a result, real GDP per capita WILL INCREASE because real GDP rose MORE than the population.

Explanation:

increase in real GDP = $106 - $101 = $5 billion, or 4.95%

population increase = 51 - 50 = 1 million people, or 2%

real GDP per capita 2010 = $101,000 / 50 = $2,020

real GDP per capita 2011 = $106,000 / 51 = $2,078

since the real GDP increased by almost 5%, while the population increased only by 2%, the real GDP per capita will increase by 2.9%