In: Economics
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.