If GDP was $10 billion in 2010 and $11 billion in 2011 and the population grew 5% between 2010 and 2011, the growth rate of GDP per capita between 2010 and 2011 was:
A) -10%.
B) -5%.
C) 5%.
D) 10%.

Question

Quizplus · Accepted Answer

The GDP growth rate is 10% ($11 billion/$10 billion - 1), and the population growth rate is 5%. GDP per capita growth rate is approximately GDP growth rate minus population growth rate, which is 10% - 5% = 5%.

If GDP Was $10 Billion in 2010 and $11 Billion