Country A’s GDP per capita in the beginning of 2005 was $22,150. In th

Country A’s GDP per capita in the beginning of 2005 was $22,150. In the beginning of 2006, it increased to $27,600. Calculate country A’s growth rate of GDP per capita between 2005 and 2006.

What will be an ideal response?

ANSWER

In this case, the growth rate of GDP per capita of country A
= ($27,600 – $22,150)/$22,150 = 0.2460 = 24.60%.