Question

The following table gives nominal GDP, real GDP, and the population for two years. Find per capita real GDP in each year and fill in the table. (Round your answers to two decimal places.) Nominal GDP

Answer 1

To calculate per capita real GDP, first ensure that GDP and population are in the same units. Then, divide real GDP by the population, rounding to two decimal places. If inflation adjustments are needed, real GDP must be calculated before this division.

Step-by-step explanation:

The student's question pertains to the calculation of per capita real GDP for two different years. To find the per capita real GDP, one must divide the real GDP by the population of the country. The process involves first converting the nominal GDP to real terms by adjusting for inflation if necessary, and then performing the division to get GDP on a per-person basis.

In this case, if the nominal GDP is given in billions of dollars and the population is in millions, first, one should convert the GDP to the same unit as the population, which means either multiplying the GDP in billions by 1000 to get millions of dollars, or dividing the population in millions by 1000 to match billions. After adjusting for units, the GDP should be divided by the population to obtain GDP per capita, rounding the answer to two decimal places as requested. Note that the student's question already includes the real GDP, so any adjustments for inflation are unnecessary in this step.

For example, if the real GDP for Year X is $500 billion and the population is 10 million, we multiply GDP by 1000 to convert to millions ($500 billion becomes 500,000 million). Then we divide this number by the population (10 million): 500,000 / 10 = 50,000, which is the per capita real GDP in dollars for Year X.

Answer 2

Per capita real GDP is calculated by ensuring GDP and population are in the same units, converting GDP into millions if necessary, and then dividing by the population. The result is a measure of a country's economic performance relative to its population size.

Step-by-step explanation:

To calculate per capita real GDP, we first need to ensure that GDP and population are measured in the same units. The per capita real GDP can be calculated using the provided GDP (in billions of U.S. dollars) and population (in millions). If GDP is in billions, we convert it to millions by either dividing by 1000 or multiplying by 1000, depending on the units given for population.

Once the GDP is in millions, we simply divide the GDP figure by the population to get the GDP per capita:

per capita real GDP = (GDP in millions of dollars) / (Population in millions)

This process will give us the real GDP per capita in U.S. dollars, which is a common measure of a country's economic performance and the average economic well-being of its citizens.

For example, if a country's GDP is $2 billion and the population is 5 million, we convert the GDP to millions ($2000 million) and divide by the population to find the per capita GDP:

per capita real GDP = $2000 million / 5 million = $400