Question

In 2011, the imaginary nation of Maconia had a population of 8,200 and real GDP of 210,500. Maconia had 5% growth in real GDP per person. In 2012 it had a population of 8,400. To the nearest dollar what was real GDP in Maconia in 2012? a. 226,416 b. 216,815 c. 221,025 d. None of the above is corre

Answer 1

Answer:

Explanation:

Given:

In 2011:

Population = 8,200 persons

Real GDP = $210,500

Percentage growth = 5% in real GDP per person

In 2012:

Population = 8,400 persons

GDP per person = GDP in that year/population

= 210500/8200

= $25.67 GDP per person.

At 5% growth,

GDP per person in 2012 = (% growth × GDP per person in 2011) + GDP per person in 2011

= (0.05 × 25.67) + 25.67

= $26.954 GDP per person in 2012

Real GDP = GDP per person × population

= $26.954 × 8,400

= 226415.85

= $226416.

Option A. 226416