Question

gross domestic product
a countrys gdp is $174,000,000 with a population of 19,360. if the rate of inflation is 2.1%, what is the countrys per capita gdp?
per capita gdp = $?
real gdp = gdp - (gdp · inflation rate)
per capita gdp = \\(\frac{\text{real gdp}}{\text{population}}\\)
round to the nearest cent.

Explanation:

Step1: Calculate Real GDP

First, we need to find the Real GDP using the formula \( \text{Real GDP} = \text{GDP} - (\text{GDP} \cdot \text{Inflation Rate}) \). The GDP is $174,000,000 and the inflation rate is 2.1% or 0.021.
So, \( \text{GDP} \cdot \text{Inflation Rate} = 174000000 \times 0.021 = 3654000 \)
Then, \( \text{Real GDP} = 174000000 - 3654000 = 170346000 \)

Step2: Calculate Per Capita GDP

Now, use the formula \( \text{Per Capita GDP} = \frac{\text{Real GDP}}{\text{Population}} \). The population is 19360.
So, \( \text{Per Capita GDP} = \frac{170346000}{19360} \approx 8800.4132 \)
Rounding to the nearest cent, we get approximately $8800.41.

Answer:

\$8800.41