00:01
Hey everyone, today we're answering problem two from chapter 25 of the textbook.
00:06
We're essentially we're given different numbers of real gdp.
00:10
We want to figure out the real gdp growth rate and then the real gdp growth rate per capita given the population in certain years.
00:18
So first off, we know that it's $30 ,000 for the real gdp in year one and then $31 ,200 in year two.
00:30
So what we're going to do is that you're going to use the year two value, which is higher, with real gdp, and subtract the year one value, and divide that all by the year one value, which is the initial value.
00:56
So with that, we would get, essentially, you would see that you get 4%, because it would be 200%.
01:13
Divided by, wait, sorry, it's 30 ,000 for year two, for year one, excuse me.
01:24
Remember, it's year two money, it's year one divided by year one.
01:26
So what's going to end up happening is that we're going to have 1 ,200 divided by 30 ,000, which equals 4%.
01:39
So that is how you do that...