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Growth Rate of GDP

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Suppose an economy's real GDP is $30,000 in year 1 and $31,200 in year 2.

1) What is the growth rate of its real GDP?
Assume that population is 100 in year 1 and 102 in year 2.
2) What is the growth rate of GDP per capita?

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Solution Summary

The response provides the steps to compute the growth rate of GDP.

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