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12 June, 13:34

In 2011, the imaginary nation of Maconia had a population of 8,200 and real GDP of 210,500.

Maconia had 5% growth in real GDP per person. In 2012 it had a population of 8,400. To the nearest

dollar what was real GDP in Maconia in 2012?

a. 216,815

b. 221,025

c. 226,416

d. None of the above is correct.

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Answers (1)
  1. 12 June, 13:38
    0
    C. 226,416

    Explanation:

    Firstly, we find the GDP per person for 2011.

    Next, we calculate the 5% GDP per person increase in 2012

    Finally, we calculate for GDP in 2012 using available data gotten

    So,

    Given that

    In 2011,

    Real GDP = 210,500

    Population = 8200

    GDP per person for 2011 = 210,500 : 8200

    = 25.67 approximately.

    In 2012, there was a 5% growth in GDP per person, therefore,

    GDP person 5% increase in 2012 = (5:100) * 25.6707317073

    = 0.05 * 25.6707317073

    = 1.2835365854

    2012 GDP per person = 25.6707317073 + 1.2835

    = 26.9542682927

    Or

    5% increase of 25.6707317073 = 25.6707317073 * 1.05 = 26.9542682927

    So, to get the GDP in 2012,

    GDP = GDP per person * population

    Where GDP per person = 26.9542682927

    Population = 8400

    Thus,

    Real GDP = 26.9542682927 * 8400

    = 226,415.8

    Approximately = 226,416 to the nearest dollar.
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