Asked by Marisa Tavarez on Jul 18, 2024
Verified
If the real GDP of a country in 2011 was 300 billion,its price index was 108.3,and its population was 150 billion,then real GDP per capita for that year was:
A) 0.5 billion.
B) 1 billion.
C) 8.3 billion.
D) 258.3 billion.
E) 2 billion.
Real GDP
Gross Domestic Product adjusted for inflation, providing a more accurate reflection of an economy's size and growth.
Price Index
A statistical estimate constructed to measure changes in the price level of a specific basket of goods and services over a period.
GDP Per Capita
A measure that divides the country's gross domestic product by its total population, indicating the average economic output per person.
- Recognize the parts and significance of GDP and GDP per capita as benchmarks of economic well-being.
Verified Answer
TS
Tamara SweisJul 22, 2024
Final Answer :
E
Explanation :
Real GDP per capita = Real GDP / Population
Real GDP = 300 billion
Population = 150 billion
Price Index = 108.3
Therefore, nominal GDP = Real GDP * Price Index/100 = 300 * 108.3/100 = 324.9 billion
Real GDP per capita = 300/150 = 2 billion
Real GDP = 300 billion
Population = 150 billion
Price Index = 108.3
Therefore, nominal GDP = Real GDP * Price Index/100 = 300 * 108.3/100 = 324.9 billion
Real GDP per capita = 300/150 = 2 billion
Learning Objectives
- Recognize the parts and significance of GDP and GDP per capita as benchmarks of economic well-being.