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  • 1 Post By romsek
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January 27th, 2019, 07:49 AM   #1
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From: Israel

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Can you help me please about the next sentence:

In the last year, nominal GDP grew by 9.2% and prices grew by 5%, therefore, if there is no change in the size of the population, real per capita GDP will increase by 4%.

I didn't understand why real per capita GDP will increase by 4%.

Thanks! (And sorry for my bad english).
IlanSherer is offline  
January 27th, 2019, 08:46 AM   #2
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Jeff can explain this further but

$\dfrac{1+0.092}{1+0.05}=1.04 \Rightarrow 4\% \text{ increase}$
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