# Macro-economics

#### IlanSherer

Hello

Can you help me please about the next sentence:

In the last year, nominal GDP grew by 9.2% and prices grew by 5%, therefore, if there is no change in the size of the population, real per capita GDP will increase by 4%.

I didn't understand why real per capita GDP will increase by 4%.

Thanks! (And sorry for my bad english).

#### romsek

Math Team
Jeff can explain this further but

$\dfrac{1+0.092}{1+0.05}=1.04 \Rightarrow 4\% \text{ increase}$

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