Question

if real income per person in 2021 is $18,073 and real income per person in 2022 is $18,635, what is the growth rate of real income over this period?a. 18.0 percent b. 3.1 percent c. 2.5 percent d. 5.62 percent e. 18.6 percent

Answer 1

The growth rate of real income from 2021 to 2022 is calculated by dividing the increase in income by the income for 2021, then multiplying by 100%. The calculated growth rate is approximately 3.11%, so the correct answer is b. 3.1 percent.

Step-by-step explanation:

To calculate the growth rate of real income over the period from 2021 to 2022, you can use the following formula:

Growth Rate = ((Real Income in 2022 - Real Income in 2021) / Real Income in 2021) x 100%

Plugging in the given values, we get:

Growth Rate = (($18,635 - $18,073) / $18,073) x 100% = (562 / 18,073) x 100% ≈ 3.11%

Therefore, the correct answer is b. 3.1 percent.