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 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).
 January 27th, 2019, 08:46 AM #2 Senior Member     Joined: Sep 2015 From: USA Posts: 2,427 Thanks: 1314 Jeff can explain this further but $\dfrac{1+0.092}{1+0.05}=1.04 \Rightarrow 4\% \text{ increase}$ Thanks from IlanSherer

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