During a presidential campaign, the incumbent argues that he should be reelected because nominal GDP grew by 12 percent during his 4-year term in office. You know that population grew by 4 percent over the period and that the GDP deflator increased by 6 percent during the past 4 years. You should conclude that real GDP per person __________.
O grew by 2%
O grew by 6%
O grew by 8%
O grew by 12%

Question says we must find real GDP per person for the 4 year term that the president has served for so we will use the formula to calculate GDP Deflator to actually solve for Real GDP as we know the formula is GDP Deflator= (nominal GDP per person%)/(Real GDP per person%)x100

So we already have the nominal GDP and the GDP deflator therefore we substitute to the above formula:

6% = (12%)/ (Real GDP per person percentage) x100, and now we solve for Real GDP per person%

Therefore we multiply both sides with Real GDP percentage and get:

Real GDP per person %( 6%) = 12% and then we divide both sides with 6%,

Therefore Real GDP is 2% so we also see that real GDP has actual grown by 2% because the GDP deflator grew instead of decreasing where nominal GDP is also positive so if we have a fraction where an answer is positive we know both fraction values must be positive pus if the GDP deflator increases both nominal and Real GDP increase and that’s the relationship they have.

swatiupadhyay714 swatiupadhyay714 · Answer 2 · 2021-12-12T10:45:31+01:00

The common measure of the value-added created by the production of goods and services in a country during a certain period is the gross domestic product (GDP).

As a reason, it also provides for the revenue generated by that production, as well as the overall amount spent on final products and services (fewer imports).

The correct answer is Grew by 2%

Because nominal GDP increased by 12% through these years, it has a meaningful result of 12%.

The population increased by 4%.

GDP deflator has a meaningful result of 6% because it has likewise grown by 6%.

We already know the nominal GDP and the GDP deflator, thus we may use the following formula instead:

Now compute the Real Income per capita percent by multiplying 6 percent by (12 percent)/ (Real GDP per person percentage) x100.

As a result, we multiply both sides by the proportion of Real GDP to get:

We reduce both sides by 6 percent to get real GDP per person percent (6%) = 12 percent.

As a response, the real economy has grown by 2% since the GDP deflator improved rather than reduced, and nominal GDP is also positive.

Therefore if we have a fraction with a positive response, we know both fraction values must be positive, and if the GDP deflator grows, both fraction values must be positive.

To know more about the GDP person, refer to the link below:

https://brainly.com/question/25282835