In 2012,the imaginary nation of Dorados had a population of 8,000 and real GDP of 3,000,000.During the year its real GDP grew by about 2.9%.Which of the following sets of growth rates is consistent with this growth in real GDP?
A)2% population growth and 6% real GDP growth
B)6% population growth and 2% real GDP growth
C)4% population growth and 7% real GDP growth
D)7% population growth and 4% real GDP growth

Question

Quizplus · Accepted Answer

Real GDP growth rate = 2.9%Population growth rate = 4%Real GDP growth rate = Population growth rate + Productivity growth rate2.9% = 4% + Productivity growth rateProductivity growth rate = 2.9% - 4% = -1.1%Therefore, the correct answer is C) 4% population growth and 7% real GDP growth.

In 2012,the Imaginary Nation of Dorados Had a Population of 8,000