Question

"Last year the imaginary nation of Freedonia had a population of 2,800 and real GDP of 16,800,000. This year it had a population of 2,700 and real GDP of 15,390,000. About what was the growth rate of real GDP per person between last year and this year?"

Answer 1

-5%

Step-by-step explanation:

Given data:

Population for the last year = 2,800

Real GDP for the last year = 16,800,000

Thus,

the GDP per person for the last year = 16,800,000 / 2,800 = 6000

Now,

Population for the this year = 2,700

Real GDP for the this year = 15,390,000

Thus,

the GDP per person for the this year = 15,390,000 / 2,700 = 5700

Therefore,

the growth in GDP =
`\frac{\textup{This year GDP per person - Last year GDP per person}}{\textup{Last year GDP per person}}*100%`

or

the growth in GDP =

or

the growth in GDP = -5%

here, the negative sign depicts that the GDP decreased