Question

If a country’s nominal GDP is growing at 4 percent per year ,annual inflation is 2 percent per year ,and the population growth rate is 0.5 percent per year, what is the growth rate of real GDP per capita?

Answer #1

A country’s real GDP per capita increased from $5,700 to
$5,850 in one year.
a. Calculate the country’s real GDP per capita growth
rate.
b. What can the government do to increase this growth rate?
List three suggestions.

Suppose that nominal GDP was $9000000.00 in 2005 in Orange
County California. In 2015, nominal GDP was $12000000.00 in Orange
County California. The price level rose 3.00% between 2005 and
2015, and population growth was 4.50%. Calculate the following
figures for Orange County California between 2005 and 2015.
Nominal GDP growth was __%
Economic growth was __%
Inflation was __%
Real GDP growth was __%
Per capita GDP growth was __%
Real per capita GDP growth was __%

Suppose that nominal GDP was $9750000.00 in 2005 in Orange County
California. In 2015, nominal GDP was $11500000.00 in Orange County,
California. The price level rose 2.00% between 2005 and 2015, and
population growth was 3.25%. Calculate the following figures for
Orange County California between 2005 and 2015.
a.
Nominal GDP growth was %.
b.
Economic growth was %.
c.
Inflation was %.
d.
Real GDP growth was %.
e. Per
capita GDP growth was %.
f.
Real per capita...

The real GDP per capita of country D doubles in 50 years. Annual
inflation rate is 25% and annual population growth rate is 2%.
Calculate the annual economic growth rate.
Calculate the annual nominal GDP growth rate.
Country D tries to expand the economy by cutting taxes and
increasing government spending. Explain why these polices are
undesirable for country D.
A serious riot occurs in Country D, and the country becomes
politically unstable. Many resources are
destroyed.
Draw an AD-AS...

Suppose that nominal GDP was $9500000.00 in 2005 in Montgomery
County Maryland. In 2015, nominal GDP was $11250000.00 in
Montgomery County Maryland. The price level rose 1.50% between 2005
and 2015, and population growth was 4.25%. Calculate the following
figures for Montgomery County Maryland between 2005 and 2015. Give
all answers to two decimals.
a. Nominal GDP growth was %.
b. Economic growth was %.
c. Inflation was %.
d. Real GDP growth was %.
e. Per capita GDP growth was %.
f. Real...

Suppose that nominal GDP was $9250000.00 in 2005 in Orange
County California. In 2015, nominal GDP was $11000000.00 in Orange
County California. The price level rose 2.00% between 2005 and
2015, and population growth was 3.50%. Calculate the following
figures for Orange County California between 2005 and 2015. Give
all answers to two decimals.
a. Nominal GDP growth was %.
Part 2 (1 point)
b. Economic growth was %.
Part 3 (1 point)
c. Inflation was %.
Part 4 (1 point)
d. Real...

What will happen to the annual rate of growth of per capita real
GDP if the annual rate of population growth increases and the
annual rate of growth of real GDP goes down?
A.
The effect will depend upon whether the rate of population
growth is greater than or less than the rate of growth of real
GDP.
B.
It will increase since the annual rate of growth of real GDP
does not influence the growth rate of per capita...

GDP per Capita Growth and Rule of 72
Current Year
Previous Year
Growth Rate
Real GDP
$8.4 trillion
$8.0 trillion
Population
202 million
200 million
GDP per Capita
$
$
Formulas you could use:
Growth Rate in percentage = (Current year value – previous year
value)/ previous year
GDP per Capita = Real GDP/population (Ch6 Section 6.4)
Future value = Present value x (1 + growth rate)^number of
years (Ch7 Section 7.2)
Rule of 72:
72/growth rate = number of...

6
A DVC’s population is growing 2 percent per year and output is
growing 3 percent per year. If the government wants to improve
living standards over coming decades, which of the following would
probably be the best saving rate for the economy?
10 percent
0 percent
5 percent
2 percent
8
Assume a DVC and an IAC currently have real per capita outputs
of $2,000 and $20,000, respectively.
Instructions: Enter your answer as a whole
number.
If both nations...

Year
Nominal GDP
Economic Growth
Workers
GDP Deflator
Capital
Population
CPI
M1
Inflation (with GDP Deflator)
2019
$22,000,000
2.10%
100
110
20,000,000
200
300
$4,000,000
1.10%
2069
$384,000,000
2.80%
150
320
60,000,000
300
1200
$40,000,000
2.90%
As you might expect from the increase in nominal GDP compared to
the increased in the GDP deflator, real GDP grew over these
projected 50 years. Also, population growth was modest given the
span of 50 years. Will all of this in mind, by...

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