Question

In 2012 a nation population's was 10 million.its nominal gdp was 40 billion.and its price index was 100.in 2021 its population has increased to 12 million ,its nominal gdp risen to 57.6 billion ,and its price index had increased to 120.what was the nation's economic growth rate during the year​

Answer 1

Answer:

So, the average per year nominal GDP growth rate is 4.4% and the average per year Real GDP growth rate is 2.4%

Explanation:

If you want to calculate the cumulative nominal GDP growth rate from 2012 to 2021:

(57.6-40)/40×100= 44%

Nominal GDP increased by 44% in 10 years from 2012 to 2021

So the compound annual growth rate would be:

44%/10= 4.4% per year nominal GDP growth

If you want to calculate the real GDP growth rate. First we'll calculate the price increase in these years:

(120-100)/100×100=20% in 10 years

So, the prices increased by 20% in these 10 years. So the compound annual growth rate in inflation would be:

20%/10=2% average increase in the price level each year.

So the Real GDP growth would be:

44%-20%= 24% in 10 years from 2012 to 2021 and the compound annual growth rate would be:

4.4%-2%=2.4% average Real GDP growth per year.

We can also calculate the GDP per capita with the population data given.