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If a country's real GDP index is one hundred twenty and its population index is one hundred ten what is the approximate real output per capita index relative to the base year?

Answer and explanation

Correct answer: About one hundred nine

The real output per capita index is calculated by adjusting the real GDP index for the population index: (120 ÷ 110) × 100 = 109.09, approximately 109. Thus option A is correct. Option C ignores population growth, option B is a rough but less accurate value, and option D incorrectly multiplies the two indices. The calculation shows that total real output grew faster than population.

Related tags

GdpWelfareIndex-NumberPer-CapitaReal-OutputGdp And WelfareNational Income And Related AggregatesEconomics

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