Discussion: Economic Growth

Answer the following question (200 words minimum). In this forum, you will not be able to see your peers’ posts until after you post.

Why do economists use real GDP per capita when analyzing economic growth? Visit The World Bank website (Links to an external site.)Links to an external site. (https://data.worldbank.org/country) and pick three countries to analyze. Calculate the real GDP per capita given the GDP and population data. Click on “DATABANK” (red tab under World Development Indicators) and report the GDP growth (annual %). Use the growth rate and Rule of 72 to determine how many years it will take for real GDP per capital to double. Share your thoughts about the results. (Reminder: Years to double = 72 / GDP growth)

Grading criteria:

Correctness of assigned discussion question (5 points).
Main post (answer to assigned discussion question) posted by Monday at 11:59pm (1 points).
Reply to two classmates OR one classmates and instructor by Wednesday at 11:59pm with substantive responses (2 points).
Post is free of spelling and grammar errors (1 points).
Post follows netiquette guidelines (1 points).

Total Points: 10

Solution Preview

Why do economists use real GDP per capita when analyzing economic growth?

Notably, economists use real GDP (Gross Domestic Product) per capita when assessing the growth of economic output. Unlike the nominal GDP which often uses the prices and quantities in a given period to track the total value produced by the economy over a certain period, the real GDP enables the economists to track the total value produced while using continuous prices and isolating the impact of periodic price changes (Cecchetti & Kharroubi, 2015).

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