A nation's population was 250 million last year and is 255 million this year. If its real GDP was $8.5 trillion last year and is $8.8 trillion this year, what is its growth rate of real GDP per person?
What will be an ideal response?
Last year real GDP per person equaled ($8.5 trillion)/(250 million) = $34,000 per person. This year, real GDP per person is $34,510 per person. Thus the growth in real GDP per person equals × 100 = 1.5 percent.
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Riley travels a great deal, and over the past several years he has read dozens of reviews of hotel chains, all of which rave about the clean rooms and great service at Comeon Inns. Last month, Riley checked into a room at a Comeon Inn for the first time, only to find the room filthy and the service lousy. He decided the Comeon Inn chain is inferior to other hotel chains
a. Riley was irrational to have believed the reviews that he had read. b. Riley was rational to have changed his mind about Comeon Inns based on his one experience. c. Riley is an example of someone who gives too much weight to a small number of vivid observations. d. Riley is an example of someone who is reluctant to change his mind.
Based on the graphs for an increase in aggregate demand and the Phillips curve, we can see that when inflation is low, ______.
a. RGDP is high
b. unemployment is low
c. aggregate demand is weak
d. aggregate demand is strong
________ unemployment is most closely associated with periods of falling GDP.
A. Structural B. Cyclical C. Frictional D. Voluntary
Portfolio investment and foreign direct investment are methods through which
A. ownership in assets are acquired in countries other than one's home country. B. U.S. residents invest funds in companies that export goods. C. short-term investments are converted to long-term ones. D. U.S. residents invest funds in companies that import goods.