Question

Consider Figure 9-7, and suppose that we round the rate of growth of per capita real GDP experienced in the European Union between 2001 and 2017 to the nearest full percentage point. Based on the information in Table 9-3, by what percentage will per capita real GDP increase over the next 30 years if the economic growth rate remains at this rounded level?

Short answer

over the next $30$years if the economic growth rate remains at this rounded level the per capita real GDP increase by$1.35\%$

Step-by-step solution

introduction

Real GDP is the all-out creation of labour and products in an economy during a year changed in accordance with expansion. Per capital Real GDP implies the genuine GDP for every unit of the populace.

explanation

From years $2001-2010$,

Growth per capita real GDP is greater than $1\%$

From years $2011-2017$,

Growth per capita real GDP is less than $1\%$

Hence rounding off the rate of growth of per capita real GDP to $1\%$

After $30$years, the compounded value of the dollar at$1\%$is$1.35$