Macro Module 13 Real GDP per capita practice exam questions

(The attached PDF file has better formatting.)

●    The nominal money supply increases 2.13%
●    The price level increases 5.82%
●    The population decreases 0.81%

Money transaction costs do not change, so the real demand for money is proportional to real GDP.

Question 13.1: Real GDP

What is the change in real GDP?

Answer 13.1: 2.13% – 5.82% = -3.69%

(percentage change in nominal money supply – percentage change in price level = percentage change in real money supply = percentage change in demand for money = percentage change in real GDP)


Question 13.2: Real GDP per capita

What is the change in real GDP per capita?

Answer 13.2: -3.69% – -0.81% = -2.88%

(percentage change in real GDP – percentage change in population = percentage change in real GDP per capita)