Question

4. (LO3) The data for three countries (all with the same base year, with figures converted to Canadian dollars) are shown in Table 4.11. le fi 15 TABLE 4.11 2.05 2.8 9.2 0.85 10.3 Population (millions) 35 Nominal GDP ($billions) $ 715 2200 2875 Altria Price Index 2009 = 100 140 120 180 o Pre Ho Mo Bergan 75 Casper 150 Calculate the real GDPs per capita for each country and rank them in size. Country Real GDP per Capita $ WN Subscriptic Subscribe now to desktop, mobile

Answer 1

Real GDP= (Nominal GDP/ Price index)$\times 100$.

Real GDP per capita= Real GDP/ Population.

Here first we have to calculate the real GDP and then the real GDP per capita.

Real GDP for Altria ,

= (715/140) x 100

.

= 510.71

Real GDP for Bergan .

= (2200/120) x 100

  .

= 1833.33

Real GDP for Casper .

= (2875/180) x 100

  .

= 1597.22

Now the real GDP per capita.

Real GDP per capita for Altria .

= 510.7135

.

= 14.60

Real GDP per capita for Bergan .

= 18, 33.33/75

   .

= 24.44

Real GDP per capita for Casper .

= 1597.22/150

  .

= 10.64

Ans:

1. Bergan.

2. Altria .

3. Casper.