Question

Japan ​'s real GDP was 510 trillion yen in 2014 and 517 trillion yen in 2015 . Japan ​'s population growth rate in 2015 was minus 0.1 percent. Calculate a. The growth rate of real GDP. b. The growth rate of real GDP per person. c. The approximate number of years it takes for real GDP per person in Japan to double if the 2015 growth rate of real GDP and the population growth rate are maintained. The growth rate of real GDP in Japan in 2015 was 1.4 percent. ​>>> Answer to 1 decimal place. The growth rate of real GDP per person in Japan in 2015 was nothing percent. ​>>> Answer to 1 decimal place.

Answer 1

Ans. Growth rate in Real GDP = (Real GDP 2015 - Real GDP 2014)/Real GDP 2014 = (517 - 510)/510 = 0.013725 or 1.3725%

Now, let the population in 2014 is x

=> After 0.1% decrease in population, the population in 2015 is 0.999x

=> Real GDP per capita in 2014, R1 = Real GDP 2014 / x = 510 trillion/x

and Real GDP per capita in 2015, R2 = Real GDP 2015 / 0.999x = 517 trillion/ 0.999x = 517.5175 trillion/ x

Growth rate in real GDP per capita = (R2 - R1)/R1 = (517.5175/x - 510/x) / (510/x) = 0.01474 or 1.474%

* Please don’t forget to hit the thumbs up button, if you find the answer helpful.