If the rate of growth of output is 8% and the rate of growth of population is 2%, what is the rate of growth of output per capita

Respuesta :

Answer and Explanation:

Population and output are related in determining output per capita(per head). Total output divided by total population is equal to output per capita. Output per capita growth rate is the difference between population growth rate and output growth rate.

If output growth rate= 8%

and population growth rate = 2%

Then per capita output growth rate= output growth rate - population growth rate

Therefore per capita output growth rate = 8% - 2% =6%

Per capita output growth rate = 8%

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