Question

If real GDP per person in 2016 is $50,000 and real GDP per person in 2017 is $52,500 what is the growth rate of real output over this period

Answer 1

5%

Step-by-step explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.

Output growth can be calculated by finding the changes in real GDP over the years

Output growth = $52,500 / $50,000 - 1 = 0.05 = 5%