Question

In: Economics

how much more (or less) output will the average american have next year of the $20...

how much more (or less) output will the average american have next year of the $20 trillion gdp grows (or contracts) by:

Assume a population of 340 million. if the economy contracts, be sure to put a (-) in front of your answers.

a. 2 percent?

b. 5 percent?

c. -1 percent?

d. 1.5 percent ?

e. 4 percent ?

f. 2.5 percent ?

Expert Solution

Solution:-

Change in GDP per capita is given as (GDP per capita * GDP by the percentage change)/total population.

Total GDP = $20 trillion or $20000000000000.

Total population = 340 million or 340000000.

a. Change in GDP per capital = (20 trillion * 2%) / 340 million

= (20000000000000 * 0.02) / 340000000

= 1176.47

Americans would have $1175.47 more of output next year.

b. Change in GDP per capital = (20 trillion * 5%) / 340 million

= (20000000000000 * 0.05) / 340000000

= 2941.18

Americans would have $2941.18 more of output next year.

c. Change in GDP per capital = (20 trillion * (-1%)) / 340 million

= (20000000000000 * (-0.01)) / 340000000

= -588.24

Americans would have $588.24 Less output next year.

d. Change in GDP per capital = (20 trillion * 1.5%) / 340 million

= (20000000000000 * 0.015) / 340000000

= 882.35

Americans would have $882.35 more of output next year.

e. Change in GDP per capital = (20 trillion * 4%) / 340 million

= (20000000000000 * 0.04) / 340000000

= 2352.94

Americans would have $2352.94 more of output next year.

f. Change in GDP per capital = (20 trillion * 2.5%) / 340 million

= (20000000000000 * 0.025) / 340000000

= 1470.59

Americans would have $1470.59 more of output next year.

Rahul Sunny answered 11 months ago

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