Question

In: Economics

Suppose that in year 1 nominal GDP for a country is $5,200 billion. The GDP price...

Suppose that in year 1 nominal GDP for a country is

$5,200 billion. The GDP price index is

114.9, and the population is

100 million. In year 1, the real wage averages

$18 per hour and workers work

35 hours per week.

In year 2, this country's nominal GDP is

$5,800 billion. The GDP price index is

115.1, and the population is now

105 million. Assume that in year 2 the real wage averages

$18 per hour and workers work

35 hours per week.

Calculate this nation's growth rate of real GDP per capita from year 1 to year 2.

A.

6.0 percent

B.

7.2 percent

C.

5.4 percent

D.

6.6 percent

Expert Solution

Rahul Sunny answered 1 year ago

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