21) GDP Measurement Use the data on U.S. real GDP below to compute real GDP per

Question

21) GDP Measurement

Use the data on U.S. real GDP below to compute real GDP per person for each year. Then use these numbers to compute the percentage increase in real GDP per person from 1987 to 2005.

Year

Real GDP (2000 prices)

Population

1987

$6,435,000 million

243 million

2005

$11,092,000 million

296.6 million

1987 Real GDP per person:

2005 Real GDP per person:

Percentage increase in real GDP per person from 1987 to 2005:

Year

Real GDP (2000 prices)

Population

1987

$6,435,000 million

243 million

2005

$11,092,000 million

296.6 million

Explanation / Answer

1987 Real GDP per person= Real GDP_1987/Population

= $6,435,000/243 = $26481.48

2005 Real GDP per person = Real GDP_2005/Population

= $11,092,000/296.6 = $37397.17

% increase in real GDP per person from 1987 to 2005

= ($37397.17-$26481.48)/($26481.48) *100%

= 41.22%

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