The table provides some data on real GDP and the population of Glovania in 2015

Question

The table provides some data on real GDP and the population of Glovania in 2015 and 2016 Real GDP trillions of yen) 600,000 649,320 Population (bilitions) 750 773 Year What is the economic growth rate in Glovania in 2016 What is the growth rate of Glovania's standard of living in 2016? >>> Answer to 1 decimal place The economic growth rate in Glovania in 2016 is 2015 2016 percent The growth rate of Glovania's standard of living in 2016 is percent. Enter your answer in each of the answer boxes.

Explanation / Answer

(1) Economic growth rate is measured by % increase in real GDP.

Economic growth rate = (Yen 649.32 Trillion / Yen 600 Trillion) - 1 = 1.082 - 1 = 0.082 = 8.2%

(2) Growth in Standard of living is measured by % increase in Real GDP per capita.

Real GDP per capita = Real GDP / Population

2015: (Yen 600 trillion / 750 billion) = (Yen 600,000 billion / 750 billion) = Yen 800

2016: (Yen 649.32 trillion / 773 billion) = (Yen 649,320 billion / 773 billion) = Yen 840

Growth in Standard of living = (Yen 840 / Yen 800) - 1 = 1.05 - 1 = 0.05 = 5.0%

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