--%>
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 : What is Special Items of Expense

    Special Items of Expense: It is an expenditure category which covers nonrecurring big expenditures or special aim expenditures which usually need a separate appropriation (or else need separation for clarity).

    		•
  • Q : Employ the aggregate demand-aggregate

    Normal 0 false false

    		•
  • Q : Effect of change on equilibrium

    Normal 0 false false

  • Q : Explain intermediation Explain

    Explain intermediation.The financial system makes it achievable for surplus and deficit economic units to come together, exchanging funds for securities, to their mutual profit. While funds flow from surplus economic units to a financial institu

    		•
  • Q : Describe formula to figure out

    Normal 0 false false

    		•
  • Q : Explain Appropriation Appropriation :

    Appropriation: The authorization for a particular agency to make expenditures or make obligations from a particular fund for a particular purpose. It is generally limited in amount and period of time during which the expenses is to be

    		•
  • Q : How do mergers influence consumers How

    How do mergers influence consumers?The effects mergers have on consumers differ widely. There may be some inconvenience and anxiety while a customer's bank or branch is obtained. The issuance of new account numbers and new checks is a familiar h

    		•
  • Q : None what are the disadvantages of

    what are the disadvantages of working capital

    		•
  • Q : Describe capital rationing Describe

    Describe capital rationing? Should a firm practice capital rationing? Why? Capital rationing is the practice of setting dollar restriction on what will be invested in new capital budgeting projects. Proprietorships, partnerships and private c

    		•
  • Q : Problem on tax and spend at possible

    Normal 0 false false