Question

Last year, real gdp in an imaginary economy was $125 billion and the population was 5 million. this year, real gdp is $132 billion and the population was 5.2 million. what was the growth rate of real gdp per person during the year?

Answer 1

Real GDP per person last year = $125 billion / 5 million = $25,000 per person
Real GDP per person this year = $132 billion / 5.2 million = $25,385 per person

Real GDP per person growth = [($25,385/$25,000) - 1] * 100%
= 1.5%