Question

# Year Nominal GDP Economic Growth Workers GDP Deflator Capital Population CPI M1 Inflation (with GDP Deflator)...

 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 how much did real GDP per person grew on average over these 50 years? Don't forget that this will be an annual growth rate.

Real gdp in 2019 = (Nominal gdp in 2019 / GDP deflator) * 100

Real gdp in 2019 = (22,000,000 / 200) * 100

Real gdp in 2019 = 110,000 * 100

Real gdp in 2019 = 11,000,000

Real gdp per person in 2019 = Real gdp in 2019 / population = 11,000,000 / 200 = 55,000

Real gdp in 2069 = (Nominal gdp in 2069 / GDP deflator) * 100

Real gdp in 2069 = (384,000,000 / 300) * 100

Real gdp in 2069 = 1,280,000 * 100

Real gdp in 2069 = 128,000,000

Real gdp per person in 2069 = Real gdp in 2069 / population = 128,000,000 / 300 = 426,666.67

Annual growth rate = (Real gdp per person in 2069 / Real gdp per person in 2019) ^ 1 / n - 1

Annual growth rate = (426,666.67 / 55,000) ^ 1 / 50 - 1

Annual growth rate = (8.5333) ^ 1 / 50 - 1

Annual growth rate = 1.04381 - 1

Annual growth rate = 0.04381 or 4.381%

so the annual growth rate of real gdp per person from 2019 to 2069 is 4.381%