Consider the following data for a hypothetical economy: YearReal GDPPopulation1$5000 billion200 million2$6000 billion250 million What is the economic growth rate for GDP per capita for this economy for year 2? A.-20% B.20% C.4% D.-4%

Economic growth rate is calculated as the percentage change in real GDP per capita.

Answered: Consider the following data for a…

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter16: Creating An Environment For Growth And Prosperity

Section: Chapter Questions

Problem 1CQ

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Question

Consider the following data for a hypothetical economy:

Year	Real GDP	Population
1	$5000 billion	200 million
2	$6000 billion	250 million

What is the economic growth rate for GDP per capita for this economy for year 2?

	A.	-20%
	B.	20%
	C.	4%
	D.	-4%

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

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