We generally get a better sense of the economic well being of consumers by lookingat their income on a per capita basis. Consider the following information below:
What is the GDP per person in the example given above? What is the growth rate (as a%)? Are people better off or worse off and why?
This is my answer:
Year | Real GDP (1996 prices) | Population |
2000 | $4,915,600 million | 233 million |
2007 | $9,243,800 million | 283.5 million |
This is my answer:
TheGDP per person for 2000 is 21,096.9957
TheGDP per person for 2007 is 32,605.99647
100 X {(4915600/233)} -{(9243800/283.5)} / (92343800/283.5)
100 X (11509.00077/32605.99647)
100 X (.352971907)
35.2971907 %
100 X (11509.00077/32605.99647)
100 X (.352971907)
35.2971907 %
Therefore the growth rate is 35.2971907 % I believe people are better off as both population and GDP have increased.
Is this correct?
Is this correct?