if the country GDP Increase By 3% And Pupulation Increase By 2% What Is The Real Percapita Income?

To calculate the real per capita income, we need to take into account both the GDP increase and the population increase.

Let's assume the initial GDP per capita is $10,000 and the initial population is 100 million.

After a 3% increase in GDP, the new GDP per capita would be:
$10,000 + ($10,000 * 0.03) = $10,300

After a 2% increase in population, the new population would be:
100 million + (100 million * 0.02) = 102 million

Now, we can calculate the real per capita income by dividing the new GDP by the new population:
$10,300 / 102 million = $100.98

Therefore, the real per capita income after a 3% increase in GDP and a 2% increase in population would be $100.98.

Formula:

Real per capita income = (GDP / Population) / (1 + Inflation rate)

Given:

- GDP increase: 3%
- Population increase: 2%
- Inflation rate: not provided (assume 0%)

Assumptions:

- Inflation rate is 0% for simplicity.

Calculation:

1. Calculate the new GDP and population after their respective increases:

- New GDP = GDP - (1 + 3%) = GDP - 1.03
- New population = Population - (1 + 2%) = Population - 1.02

2. Calculate the real per capita income using the formula with an inflation rate of 0%:

- Real per capita income = (New GDP / New population) / (1 + 0%)
- Real per capita income = (GDP - 1.03) / (Population - 1.02) / 1

3. Simplify the expression:

- Real per capita income = GDP - 1.03 / Population - 1.02
- Real per capita income = GDP - 1.0098 / Population

Conclusion:

The real per capita income increases by approximately 0.98%.