What Is the Annual Rate of Growth of Per Capita

question 87

Multiple Choice

What is the annual rate of growth of per capita real GDP if real GDP grows at a constant rate of 3 percent per year and the annual rate of population growth is 3 percent?

• A) 0 percent
• B) 3 percent
• C) -6 percent
• D) 6 percent

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Definitions:

Profitability Analysis

Evaluation of a company's ability to generate earnings compared to its expenses over a specific period.

Cross-Sectional Analysis

An analytical method that involves comparing different data points at a specific point in time across a sample or population.

Common Size Statements' Analysis

A method of financial analysis that expresses each line item as a percentage of a standard value from the financial statements to allow for comparison.

Trend Analysis

The practice of collecting information and attempting to spot a pattern, often used in financial analysis to predict future movements.