Final answer:
The real GDP grew at 10%, while the per capita real GDP decreased at approximately -8.33%. This reflects the impact of population growth on per capita figures, showing that even if the economy grows, the standard of living can decline if the population grows faster.
Step-by-step explanation:
To calculate the growth rate of the real GDP, we take the GDP from this year and subtract the GDP from the previous year, then divide by the GDP from the previous year, and multiply by 100 to get a percentage. To compute the per capita real GDP growth rate, we similarly find the growth rate of per capita GDP, which is calculated by dividing the country's GDP by its population.
Real GDP Growth Rate Calculation
Real GDP growth rate = ((This Year's GDP - Last Year's GDP) / Last Year's GDP) × 100
Real GDP growth rate = (($11 billion - $10 billion) / $10 billion) × 100
Real GDP growth rate = ($1 billion / $10 billion) × 100 = 10%
Per Capita Real GDP Growth Rate Calculation
Per capita GDP last year = Last Year's GDP / Last Year's Population
Per capita GDP last year = $10 billion / 1 million = $10,000
Per capita GDP this year = This Year's GDP / This Year's Population
Per capita GDP this year = $11 billion / 1.2 million = ~$9,166.67
Per capita real GDP growth rate = ((This Year's Per Capita GDP - Last Year's Per Capita GDP) / Last Year's Per Capita GDP) × 100
Per capita real GDP growth rate = (($9,166.67 - $10,000) / $10,000) × 100
Per capita real GDP growth rate = (-$833.33 / $10,000) × 100 = -8.33%