Year 1 Real GDP(millions of 2005 dollars) 500, Population (millions of people) 1
ID: 1164191 • Letter: Y
Question
Year 1 Real GDP(millions of 2005 dollars) 500, Population (millions of people) 10
Year 2 Real GDP (millions of 2005 dollars) 550, Population (millions of people) 11
According to the data in the table above,
as measured by real GDP per person, the standard of living remained the same between year 1 and year 2.
real GDP grew more rapidly than population between year 1 and year 2.
the standard of living worsened between year 1 and year 2.
real GDP grew more slowly than population between year 1 and year 2.
the standard of living improved between year 1 and year 2.
as measured by real GDP per person, the standard of living remained the same between year 1 and year 2.
real GDP grew more rapidly than population between year 1 and year 2.
the standard of living worsened between year 1 and year 2.
real GDP grew more slowly than population between year 1 and year 2.
the standard of living improved between year 1 and year 2.
Explanation / Answer
Given : Year 1, Real GDP : 500 millions, Population : 10 millions
Year 2, Real GDP : 550 millions, Population : 11 millions
Standard of Living , Year 1 : Real GDP / Population = 500 / 10 = 50
Year 2 : 550 / 11 = 50
Thus, as measured by real GDP per person, the standard of living remained the same between year 1 and year 2.
Growth in Real GDP : GDP in Year 2 - GDP in Year 1 / GDP in Year 1 * 100
550 - 500 / 500 * 100 = 10%
Growth in population : Population in Year 2 - Population in Year 1 /Population in Year 1 * 100
11-10 / 10* 100 = 10%
Thus the Growth in GDP from Year 1 to Year 2 is the same as Growth in Population.
Thus the right answer is
Ans. 1) as measured by real GDP per person, the standard of living remained the same between year 1 and year 2.
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