My Math Forum  

Go Back   My Math Forum > Science Forums > Economics

Economics Economics Forum - Financial Mathematics, Econometrics, Operations Research, Mathematical Finance, Computational Finance


Thanks Tree1Thanks
  • 1 Post By romsek
Reply
 
LinkBack Thread Tools Display Modes
January 27th, 2019, 07:49 AM   #1
Member
 
Joined: Mar 2017
From: Israel

Posts: 85
Thanks: 2

Macro-economics

Hello

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
Senior Member
 
romsek's Avatar
 
Joined: Sep 2015
From: USA

Posts: 2,371
Thanks: 1274

Jeff can explain this further but

$\dfrac{1+0.092}{1+0.05}=1.04 \Rightarrow 4\% \text{ increase}$
Thanks from IlanSherer
romsek is online now  
Reply

  My Math Forum > Science Forums > Economics

Tags
macroeconomics



Thread Tools
Display Modes


Similar Threads
Thread Thread Starter Forum Replies Last Post
Macro-economics IlanSherer Economics 3 January 25th, 2019 08:56 AM
Macro-economics IlanSherer Economics 2 May 8th, 2018 07:19 AM
Macro-economics IlanSherer Economics 7 May 6th, 2018 11:03 AM
Macro-economics IlanSherer Economics 5 May 5th, 2018 08:03 AM
Macro-economics IlanSherer Economics 3 April 10th, 2018 03:47 AM





Copyright © 2019 My Math Forum. All rights reserved.