Question

A country's rate of real GDP growth is 3% per year. Its population is growing 4% per year. At what rate is its real GDP per capita changing?
A. Real GDP per capita is increasing by 0.75%.
B. Real GDP per capita is increasing by 7%.
C. Real GDP per capita is decreasing by 1.33%.
D. Real GDP per capita is decreasing by 1%.

Answer 1

Answer: I THINK GDP per capita = GDP of the country / total population of the country. Now, GDP per capita growth rate = ((GDP per capita for previous year - GDP per capita for present year) * 100 ) / GDP per capita growth for previous year. So it might be A