Question

In 2016, the Neverland had a population of 8,200 and real GDP of 210,500. Neverland had 5% growth in real GDP per person. In 2019 it had a population of 8,400. To the nearest dollar what was real GDP in the Neverland in 2019?a. $256,815b. $249,623c. 226,416d. None of the above is correct

Answer 1

226,416

Step-by-step explanation:

Answer 2

c.226,416

Step-by-step explanation:

Calculation for what was real GDP in the Neverland in 2019

First step is to calculate real GDP per capital

Real GDP per capital=210,500/8,200

Real GDP per capital=25.6707

Second Step is to calculate Real GDP per person

Real GDP per person=(1+0.05)*25.6707

Real GDP per person=1.05*25.6707

Real GDP per person=26.954235

Last step is to calculate the real GDP in the Neverland in 2019

Using this formula

Real GDP in the Neverland in 2019=Real GDP per person* Population

Let plug in the formula

Real GDP in the Neverland in 2019=26.954235*8,400

Real GDP in the Neverland in 2019=226,416

Therefore the real GDP in the Neverland in 2019 will be 226,416