Re: Everything is NOT Zia’s fault – here are 6 reasons why
Hmmm … let us do some calculation and check: 
Standard method:
Country A:
Real GDP per capita growth rate:
Real GDP in 2013 = $ 1000 million
Real GDP in 2014 = $ 1050 million
(1050 divied by 1000) = 1.05
Minus 1 and then multiply by 100 (that is procedure to get % increase … I mentioned that in post I answered to Spock)
(1.05 – 1) multiply by 100 = 5 %
Calculated real GDP growth rate = 5 %
Population growth rate:
Population in 2013 = 1 million
Population in 2014 = 1.02 million
(1.02 divided by 1) = 1.02
Minus 1 and then multiply by 100 (that is procedure to get % increase … as mentioned earlier)
(1.02 – 1) multiply by 100 = 2 %
Calculated real population growth rate = 2 %
So, we get:
In 2013 … Per capita income at constant price = ($1000 m divided by 1 m) = $1000
In 2014 … Per capita income at constant price = ($1050 m divided by 1.02 m) = $1029.41
Real GDP per capita increase in one year … from 2013 to 2014:
(1029.41 divided by 1000) = 1.02941
Minus 1 and then multiply by 100 (that is procedure to get percentage increase … as mentioned earlier)
(1.02941 – 1) multiply by 100 = 2.941 %
That means: Real GDP per capita increased was 2.941 % in 2014 from 2013.
Let us now use the formula I gave above (actually, it is same as above, but short for those who know real growth rate and population growth):
Real GDP per capita increase = (Real GDP growth rate) divided by (population growth rate)
Real GDP growth rate from above was 5 %
Population growth rate from above was 2 %
So, to get real GDP per capita growth rate, what we do is:
1.05 divided by 1.02 = 1.02941
Minus 1 and then multiply by 100 (that is procedure to get % increase … I mentioned that in post I answered to Spock)
(1.0294 – 1) multiply by 100 = 2.941 %
Or Real GDP per capita increased was 2.941 % in 2014 from 2013.
Can you check … is both same (2.941 %)?
If yes … then what formula I gave is accurate