2016 2017 2016 2017 Real GDP $144 billion $157 billion $396 billion $430 billion Population 59.4...

2016	2017	2016	2017
Real GDP	$144 billion	$157 billion	$396 billion	$430 billion
Population	59.4 million	60.2 million	44.4 million	44.8 million

a. Compute the GDP per capita for each country X and Y for both years 2016 and 2017

b. Which population was better off in 2016? 2017?

c. Compute the rate of growth of GDP per capita between 2016 and 2017. Which country showed the greatest progress?

Solutions

Expert Solution

Answer: The given table shows the data presented in the question:

Year	2016 (Country X)	2017 (Country X)	2016 (Country Y)	2017 (Country Y)
Real GDP	$144 billion	$157 billion	$396 billion	$430 billion
Population	59.4 million	60.2 million	44.4 million	44.8 million

(a): Real GDP per capita for each country is given by (Real GDP / Population):

Year	2016 (Country X)	2017 (Country X)	2016 (Country Y)	2017 (Country Y)
GDP per capita	$ 2424.24	$ 2607.97	$ 8918.92	$9598.21

(b): Country Y was better off in 2016 and 2017 since it had a higher per capita GDP compared to country X.

(c): The rate of growth per capita for country X is: 7.58%

The rate of growth per capita for country Y is: 7.62%

Thus, country Y showed greatest progress since it has a higher growth rate than country X (growth rate was high by .04%).

[Growth rate for 2 years in given by GDP per capita of: (2017-2016) / 2016]

Rahul Sunny answered 1 year ago

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