If real GDP increases from $100 billion to $105 billion, and the population increases from 100 million to 102 million, what is the growth rate of real GDP per person? The growth rate of real GDP per person is ___ percent

ENGR.ECONOMIC ANALYSIS
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If real GDP increases from $100 billion to $105 billion, and the population increases from 100 million to 102 million, what is the growth rate of real GDP per person? The growth rate of real GDP per person is ___ percent

Let's do the math and calculate an economy's growth rate.
This formula makes it clear
that real GDP per person
grows only if real GDP grows
faster than the population.
If the growth rate of the
population exceeds the
growth of real GDP, then
real GDP per person falls.
Reset
Growth rate of
real GDP per person
Growth rate of population =
Growth rate
of real GDP
Growth rate
of population
202 million - 200 million
200 million
= 1 percent.
* 100
Growth rate of real GDP per person = 5 percent - 1 percent
= 4 percent.
Transcribed Image Text:Let's do the math and calculate an economy's growth rate. This formula makes it clear that real GDP per person grows only if real GDP grows faster than the population. If the growth rate of the population exceeds the growth of real GDP, then real GDP per person falls. Reset Growth rate of real GDP per person Growth rate of population = Growth rate of real GDP Growth rate of population 202 million - 200 million 200 million = 1 percent. * 100 Growth rate of real GDP per person = 5 percent - 1 percent = 4 percent.
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