Question

Last year real GDP in the imaginary nation of Oceania was 561.0 billion and the population was 2.2 million. The year before, real GDP was 500.0 billion and the population was 2.0 million. What was the growth rate of real GDP per person during the year?

Answer 1

Answer:

The answer is: 2%

Explanation:

First of all since we were not given any inflation rate, we can assume it is 0.

• The real GDP per capita for Oceania during last year was: $255,000 per person ($561 billion / 2.2 million people).
• The real GDP per capita for Oceania during the year before was: $250,000 per person ($500 billion / 2 million people).

The real GDP per capita growth rate was 2%

= {[($255,000 / $250,000) - 1] x 100} = 2%