00:01
So here we're talking about real gdp and some variations on it, right? so let's remember that real gdp per capita is equal to real gdp, right, divided by the population.
00:18
So here we are thinking in year two.
00:22
Well, we know what the population is, right? the year two population is just given, right? it's equal to 400 million.
00:33
That's the population.
00:33
But we don't know what real gdp per capita is, but we do know the growth rate, right? the growth rate is 4%.
00:43
So we can apply the growth rate to this.
00:48
The population is unchanging.
00:53
So we know this entire thing, right? we know, sorry, the growth rate of real gdp is growing by 4%.
01:01
That means the whole thing is growing by 4%, right? the top of the fraction is growing at 4%, and the bottom of the fraction is unchanging.
01:12
So the whole fraction is growing at 4%.
01:14
So that means we start at 45 ,000.
01:20
We are growing by 4%, right? so we're multiplying by 1 .04.
01:28
And that gives us gdp per capita in year two of 46 ,800, right? that's the easiest way to do it, i think...