Question

The population in the current year is 31.5 million and the real GDP is $814 million. The previous year's statistics were a population of 31 million and a real GDP of $800 million. The change in the standard of living, measured by growth in real GDP per person, is _______/

Answer 1

The change in the standard of living, measured by growth in real GDP per person, is 0.1356%

Explanation:

Given,

In the current year,

Population = 31.5 million,

Real GDP = $814 million,

So, the real GDP per person =
`(814)/(31.5)` ≈ 25.841

In the previous year,

Population = 31 million,

Real GDP = $800 million,

So, the real GDP per person =
`(800)/(31)` ≈ 25.806

Hence, change percentage =
`\frac{\text{Change in GDP per person}}{\text{Previous year GDP per person}}* 100`

`=(25.841-25.806)/(25.806)* 100`

`=(0.035)/(25.806)* 100`

`=(3.5)/(25.806)`

≈ 0.1356 %