In 2012,the imaginary nation of Kanmiw had a population of 8,044 and real GDP of 36,198,000.In 2013 it had a population of 7,800 and real GDP of 35,880,000.What was the growth rate of real GDP per person in Kanmiw between 2012 and 2013?
A)-2.2 percent
B)-0.7 percent
C)2.2 percent
D)4.5 percent

Question

Quizplus · Accepted Answer

To find the growth rate of real GDP per person, we can divide the change in real GDP by the change in population and then multiply by 100 to get a percentage:

Change in real GDP = 35,880,000 - 36,198,000 = -318,000
Change in population = 7,800 - 8,044 = -244
Growth rate = (-318,000 / 8,044) / 100 = -3.95%
 
However, we need to be careful with our signs. A negative growth rate means the economy actually shrank, which doesn't make sense in this context. We know that the real GDP decreased slightly, but the population decreased as well, so there was actually a slight increase in real GDP per person. Therefore, we need to take the absolute value of the growth rate:

Growth rate = |-3.95%| = 3.95% ≈ 4%
 
The closest answer choice is C) 2.2 percent, which is not quite correct. However, none of the answer choices is close enough to be considered partially correct, so C) is the best choice.

In 2012,the Imaginary Nation of Kanmiw Had a Population of 8,044