Real GDP Per Capita, Growing at a Constant Rate Over

question 80

Multiple Choice

Real GDP per capita, growing at a constant rate over a 35-year period, has doubled at the end of that period. What must the annual growth rate of real GDP per capita be for this economy?

• A) 1%
• B) 2%
• C) 4%
• D) 15%

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Definitions:

Q

Quantity, frequently used in economic equations and discussions to denote the amount of goods produced or consumed.

PQ

The product of price (P) and quantity (Q), often used in economics to calculate total revenue or expenditure.

P

Typically refers to "Price" in economic models, representing the monetary value assigned to a good or service in the market.

V

Typically stands for Velocity in economic contexts, referring to the rate at which money circulates in the economy.