Question

Suppose an economy’s real GDP is $30,000 in year 1 and $31,200 in year 2. What...

  1. Suppose an economy’s real GDP is $30,000 in year 1 and $31,200 in year 2. What is the growth rate of its real GDP? Assume that population is 100 in year 1 and 102 in year 2. What is the growth rate of real GDP per capita?
Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The growth rate of real GDP=((RGDP in year 2 -RGDP in year 1)/RGDP in year 1)*100

the growth rate of its real GDP=((31200-30000)/30000)*100

=4%

the growth rate of its real GDP is 4%

--------------

Per capita real GDP =RGDP/Population

Per capita real GDP in year 1=30000/100=300

Per capita real GDP in year 2=31200/102=305.882353

The growth rate of per capita real GDP =((305.882353-300)/300)*100

=1.96078433

the growth rate of per capita real GDP is 1.96%

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Suppose an economy’s real GDP is $30,000 in year 1 and $31,600 in year 2. What...
Suppose an economy’s real GDP is $30,000 in year 1 and $31,600 in year 2. What is the growth rate of its real GDP? Assume that population was 100 in year 1 and 102 in year 2. What is the growth rate of GDP per capita? (Show ALL of your calculations!) When and where did modern economic growth first happen? What are the major institutional factors that form the foundation for modern economic growth?
GDP per Capita Growth and Rule of 72 Current Year Previous Year Growth Rate Real GDP...
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...
Suppose real GDP in the U.S. was $19,000 billion in 2019 and $18,900 billion in 2020....
Suppose real GDP in the U.S. was $19,000 billion in 2019 and $18,900 billion in 2020. Assume that population in the U.S. was 0.32 billion in 2019 and 0.35 billion in 2020. a. What was the growth rate of real GDP from 2019-2020? b. Calculate GDP per capita in both 2019 and 2020. c. What was the growth rate of real GDP per capita from 2019-2020?
Country Real GDP 2014 Real GDP 2015 Blissful Acre $150,000,000 $156,000,000 Happy Haven $6,000,000 $6,300,000 Use...
Country Real GDP 2014 Real GDP 2015 Blissful Acre $150,000,000 $156,000,000 Happy Haven $6,000,000 $6,300,000 Use the table above for the following questions What is Blissful Acre’s rate of growth of real GDP? What is Happy Haven's rate of growth of real GDP? If Blissful Acre’s population growth between 2014 and 2015 is 2%, what is the rate of growth of real GDP per capita If Happy Haven’s growth rate of real GDP per capita is 2.5%, what is the...
What will happen to the annual rate of growth of per capita real GDP if the...
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...
1. In 1999, real GDP per capita in the US was $43,820 (2012 dollars). In 2018,...
1. In 1999, real GDP per capita in the US was $43,820 (2012 dollars). In 2018, real GDP per capita was $56,803. (a) What was the annual growth rate of real GDP per capita from 1999 to 2018. (b) Suppose when you graduate, you get a good job and your income is equal to GDP per capita. Also suppose your income grows at exactly the same rate as the growth rate in GDP per capita each year that you work....
⒈Real GDP per person in Northland is $30,000, while real GDP in Southland is $10,000, However,...
⒈Real GDP per person in Northland is $30,000, while real GDP in Southland is $10,000, However, Northland's real GDP per person is growing at 1 percent per year, and Southland's real GDP per person is growing at 3 percent per year. If these growth rates persist indefinitely, then: A) Northland's real GDP per person will decline until it equals Southland's. B) Southland's real GDP per person will eventually be greater than Northland's. C) Northland's real GDP per person will always...
Suppose that real GDP per capita is $50,000 and grows at a constant rate of 2%...
Suppose that real GDP per capita is $50,000 and grows at a constant rate of 2% per year. According to the rule of 70, what will the value of real GDP per capita be in 70 years? $200,000 $50,000 $100,000 $150,000
10. a) Real GDP per capita in Brainland in 2020 is $20,000. Due to past investment...
10. a) Real GDP per capita in Brainland in 2020 is $20,000. Due to past investment in its education system and infrastructure, Brainland has been experiencing a growth rate in real GDP per capita of 7% per year. Assume real GDP per capita continues to grow at 7% for the next 30 years. Use the rule of 70 to determine what real GDP per capita would be in the year 2050.    b) Real GDP per capita in the neighboring...
The following table depicts statistics on GDP per capita (ie, GDP/population) in column (1) and its...
The following table depicts statistics on GDP per capita (ie, GDP/population) in column (1) and its growth rate for the country groups (column 2) defined by GDP levels (High-income, Middle-income and Low-income). They are all expressed as real (constant) GDP. A B C Country group GDP per capita (Year 2010) Average annual growth rate of real GDP per capita (Year 2000-2010) GDP per capita (Year 2088) High-income 38,293 0.9% 77024.76 Middle-income 3,980 4.8% 154192.5 Low-income 507 3.0% 5085.24 Throughout this...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT