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BUSINESS MATH STUDENT ACTIVITY WORKBOOK

Using the information below, determine:
a. Which nation has the highest real GDP.
b. Which nation has the lowest real GDP.
c. Which nation has the highest per capita GDP.
d. Which nation has the lowest per capita GDP.

\begin{tabular}{|c|c|c|c|}
\hline Nation & GDP & Population & Inflation Rate \\
\hline France & [tex]$\$[/tex] 1,250,699,000,000[tex]$ & $[/tex]59,361,000[tex]$ & $[/tex]2.2 \%[tex]$ \\
\hline Italy & $[/tex]\[tex]$ 1,197,000,000,000$[/tex] & [tex]$56,877,000$[/tex] & [tex]$2.8 \%$[/tex] \\
\hline U.K. & [tex]$\$[/tex] 1,022,000,000,000[tex]$ & $[/tex]56,467,000[tex]$ & $[/tex]3.4 \%$ \\
\hline
\end{tabular}



Answer :

GinnyAnswer
To solve this problem, we need to make a few calculations. Let's walk through each one step by step.

### Definitions
1. Nominal GDP: The GDP as given in the table.
2. Real GDP: This is the GDP adjusted for inflation.
3. Per Capita GDP: This is the GDP per person and is calculated by dividing the GDP by the population.

### Formulas
1. Real GDP:
[tex]\[ \text{Real GDP} = \frac{\text{Nominal GDP}}{1 + \left(\frac{\text{Inflation Rate}}{100}\right)} \][/tex]
2. Per Capita GDP:
[tex]\[ \text{Per Capita GDP} = \frac{\text{Nominal GDP}}{\text{Population}} \][/tex]

### Step-by-Step Calculations
#### For France:
- Nominal GDP: \[tex]$1,250,699,000,000 - Population: 59,361,000 - Inflation Rate: 2.2% Real GDP: \[ \text{Real GDP (France)} = \frac{1,250,699,000,000}{1 + \left(\frac{2.2}{100}\right)} = \frac{1,250,699,000,000}{1.022} = \$[/tex]1,223,698,240,900.20
\]

Per Capita GDP:
[tex]\[ \text{Per Capita GDP (France)} = \frac{1,250,699,000,000}{59,361,000} = \$21,073.84 \][/tex]

#### For Italy:
- Nominal GDP: \[tex]$1,197,000,000,000 - Population: 56,877,000 - Inflation Rate: 2.8% Real GDP: \[ \text{Real GDP (Italy)} = \frac{1,197,000,000,000}{1 + \left(\frac{2.8}{100}\right)} = \frac{1,197,000,000,000}{1.028} = \$[/tex]1,184,883,495,145.63
\]

Per Capita GDP:
[tex]\[ \text{Per Capita GDP (Italy)} = \frac{1,197,000,000,000}{56,877,000} = \$21,048.37 \][/tex]

#### For U.K.:
- Nominal GDP: \[tex]$1,022,000,000,000 - Population: 56,467,000 - Inflation Rate: 3.4% Real GDP: \[ \text{Real GDP (U.K.)} = \frac{1,022,000,000,000}{1 + \left(\frac{3.4}{100}\right)} = \frac{1,022,000,000,000}{1.034} = \$[/tex]988,505,801,370.49
\]

Per Capita GDP:
[tex]\[ \text{Per Capita GDP (U.K.)} = \frac{1,022,000,000,000}{56,467,000} = \$18,106.67 \][/tex]

### Results
- Highest Real GDP: France (\[tex]$1,223,698,240,900.20) - Lowest Real GDP: U.K. (\$[/tex]988,505,801,370.49)
- Highest Per Capita GDP: France (\[tex]$21,073.84) - Lowest Per Capita GDP: U.K. (\$[/tex]18,106.67)

### Summary:
a. The nation with the highest real GDP is France.
b. The nation with the lowest real GDP is the U.K..
c. The nation with the highest per capita GDP is France.
d. The nation with the lowest per capita GDP is the U.K..