In 2024, Country Alpha recorded a Nominal Gross Domestic Product (GDP) of \text{₦}1.5\text… — JAMB UTME

In 2024, Country Alpha recorded a Nominal Gross Domestic Product (GDP) of $\text{₦}1.5\text{ trillion}$ with a GDP deflator of $120$ . If the total population of Country Alpha in 2024 was $25\text{ million}$ , what was the Real Per Capita Income of the country in Naira?

Answer: 50000 Naira

Answer

The Real Per Capita Income of Country Alpha for the year 2024 was 50,000 Naira.

To find the Real Per Capita Income, we first deflate the Nominal GDP to arrive at Real GDP:

\text{Real GDP} = \frac{\text{Nominal GDP}}{\text{GDP Deflator}} \times 100 = \frac{\text{₦}1.5\text{ trillion}}{120} \times 100 = \text{₦}1.25\text{ trillion}

. Next, divide Real GDP by the total population of

25\text{ million}

\frac{\text{₦}1,250,000,000,000}{25,000,000} = 50,000\text{ Naira}

Step-by-Step Solution

Determine the Real GDP of Country Alpha by adjusting Nominal GDP for inflation using the GDP Deflator.

Real GDP = ₦1,250,000,000,000 (or ₦1.25 trillion).

Nominal GDP includes price changes, so dividing by the GDP deflator (120) and multiplying by 100 yields the constant-price output volume.

Divide Real GDP by total population to find Real Per Capita Income.

Real Per Capita Income = 50,000 Naira.

Per capita metrics measure the average real income per individual in the population.

Key Concept

Real Per Capita Income calculation from Nominal GDP, GDP Deflator, and Population

Estimated Time:1m 30s

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