--%>
Assignment Help - homework help

Growth rate of its real GDP

Assume an economy’s real GDP is $30,000 in year 1 and $31,200 in year 2.  Describe the growth rate of its real GDP?  Suppose that population was 100 in year 1 and 102 in year 2. Explain rate of GDP per capita? 

E

Expert

Verified

Growth rate of real GDP will be 4 percent (= $31,200 - $30,000)/$30,000). GDP per capita in year 1 will be $300 (= $30,000/100). GDP per capita in year 2 is $305.88 (= $31,200/102). Growth rate of GDP per capita is 1.96 percent is ($305.88 - $300)/300).

   Related Questions in Finance Basics

  • Q : Describe relationship among a bonds

    Describe relationship among a bond's market price and its promised yield to maturity? Describe.A bond's market price based on its yield to maturity (YTM). While a bond has YTM greater than its coupon rate, it sells at discount from its face va

    		•
  • Q : What is Continuing Appropriation

    Continuing Appropriation: This is an appropriation for the set amount which is obtainable for more than 1-year.

    		•
  • Q : Why do businesses spend efforts to

    Why do businesses spend effort, time and money to generate forecasts?  Describe.Businesses succeed or fail based on how well prepared they are to deal along with the situations they confront in the future. Hence they expend considerable sum

    		•
  • Q : Productivity growth in quantitative

    Normal 0 false false

    		•
  • Q : Define Reserve Reserve: The amount of a

    Reserve: The amount of a fund balance set sideways to give for expenditures from the unencumbered balance for ongoing appropriations, future apportionments, and economic uncertainties, pending salary or price raise appropriations, and appropriations f

    		•
  • Q : What is Capital Outlay Capital Outlay

    Capital Outlay (CO): A character of expenses of funds to obtain land, plan and build new buildings, expand or transform existing buildings, and/or purchase tools associated to such construction.

    		•
  • Q : Resources flow Normal 0 false false

    Normal 0 false false

  • Q : What is Final Budget Final Budget :

    Final Budget: Usually refers to the Governor’s Budget as amended by actions taken on the Budget Bill (example, legislative changes, and Governor’s vetoes). Note

    		•
  • Q : What is Amendment Amendment : A

    Amendment: A proposed or customary change to a bill in the Legislature, the California Constitution, acts passed by the Legislature, or ballot initiative.

    		•
  • Q : Define the term State Fiscal Year

    Define the term State Fiscal Year: This is the period beginning from July 1 and continuing through the subsequent June 30.

    		•