Question

1- The nominal GDP growth rate is 10% with an inflation rate of 6% and a population growth rate of 1%. Thus, the real growth rate of GDP per capita is:

7%.

5%.

3%.

17%.

2- If real GDP per capita for Schruteland grew from $5 trillion to $10 trillion between 1980 and 2015, then which of the following was the approximate annual growth rate?

35%

2%

4%

6%

Answer 1

Answer:

1]

Growth rate of real GDP per capita = Nominal GDP growth rate - inflation – population growth rate

Growth rate of real GDP per capita = 10% - 6% - 1% = 3%

Hence Growth rate of real GDP per capita is 3%

2]

Annual growth rate = 10 / 5 = 2%

Thus approximate annual growth rate is 2%