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)216,815
B)221,025
C)226,416
D)None of the above is correct.

Question

Quizplus · Accepted Answer

To find the real GDP in 2012, first calculate the real GDP per person in 2011, which is 210,500 / 8,200 = 25.67. With a 5% growth, the real GDP per person in 2012 is 25.67 * 1.05 = 26.9535. Multiply this by the 2012 population: 26.9535 * 8,400 = 226,416.

In 2011,the Imaginary Nation of Maconia Had a Population of 8,200