Question

Reference equation: Real GDP per capita growth rate Nominal GDP per capita growth rate - Inflation rate - Population growth rate This equation is an approximation of the exact rate of growth of GDP per capita, and so it results in some errors when calculating this rate. However, the simplified equation both is easy to use and results in small error terms when inflation, nominal GDP growth, and population growth are low, and so it is a useful approximation. The table below lists a fictional country's nominal GDP real GDP, GDP deflator, and population over two years. Population Year 2015 2016 Nominal GDP $1,000,000 $1.050. GDP de flater ee 124 Real GDP 2015 dollars) $1.00.ece $1.009.615 a. Verify that the real GDP values in the above table are accurate, Instructions: Round your answers to one decimal place b. This country's real GDP per capita for 2015 is This country's real GDP per capita for 2016 is

Answer 1

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  a) Nominal h.D. P. X Real a D.P . 100 = 60. P Deflator. So in 2015= WL 1900,000_X_1,00 22.00 Real GDP So Real GD. P = 7000,000 | In 2016 - 1050000_X_200_2104 - Real a D. P . Real G.P. P = $ 1009, 615 the Real 6.0. P values in above are - accurate. S Real G.O.P. fer capita = Real h.D.P. - Population. In 20152 1.000.000 » $1000 1000g In 2016 2009, 615 - $ 77005 100 4. hrowth rate in re 7 Realho love - Real s.pl per capitato per capita Real h.D.P per capita 2015 + tom Real hoe is confith
  
  - So Growth rate in real a D. l fer capita = lood-1.000 x 100 1ooo a 4. x100 1008 0.4% . arowth rate in nominal. hidup → 1050.000 - 1000000 1000000 Aloever 5oooog x 7oo. 1000000 25% P » a arowth rate in &104-1oox loo 1oo - 40- Groroth rate in population : 1005-1000 x Zoo looo 5*700 70.5%. 1ooo Note - Please hit like, please urgent